UNIVERSITY 

OF  CALIFORNIA 

LOS  ANGELES 


SCHOOL  OF  LAW 
LIBRARY 


Oklahoma  Oil  and  Gas 

Laws 


INCLUDING  ALL   OKLAHOMA  LAWS   OF  A  GENERAL 

NATURE    CONTAINED    IN    REVISED    LAWS    OF 

OKLAHOMA  1910  AND   SESSION   LAWS   OF 

1910-11,  1913,  1915,  1916,  1917,  1919  AND 

1921  RELATING  TO  OIL  AND  GAS. 


ALSO    DECISIONS    OF    OKLAHOMA    CITING    AND    CONSTRUING 

SUCH  STATUTES  AND  SESSION  LAWS,  INCLUDING  VOLUME 

82    OF    THE    OKLAHOMA    REPORTS,    WITH    PACIFIC 

REPORTER  CITATIONS  INCLUDING  VOLUME  205. 


CONTAINS    A    COMPLETE    DIGEST  OF     ALL     OIL     AND     GAS     CASES 
DECIDED    BY    THE   OKLAHOMA  SUPREME  COURT.  AND  OKLA- 
HOMA    CASES     DECIDED     BY     THE     FEDERAL     COURTS, 
INCLUDING  VOLUME   82  OKLA.    REPORTS,   205   PAC. 
REPORTER,   276  FEDERAL   REPORTER,   AND 
252    U.    S.    SUPREME. 


ALSO  RULES  AND  REGULATIONS  OF  CORPORATION  COMMISSION 
ON  OIL  AND  GAS  AND  CAREFULLY  SELECTED  FORMS. 


By 

LEWIS  A.  WALLACE 

in 
Of  the  Okmulgee,  Okla.,  Bar 


THOMAS  LAW  BOOK  COMPANY 

St.  Louis,  Mo. 

1922. 


QOPYRIGHT,  1922, 

BY 
LEWIS  A.  WALLACE. 


Table  of  Contents 


CHAPTEB  PAGE 

I.  Leasing  of  School  and  Other  Public  Lands 9 

II.  State  May  Lease  Riparian  Oil  Lands 13 

III.  State  May  Lease  Penal  or  Eleemosynary  Lands 14 

IV.  County,  Town  or  School  District  May  Lease 15 

V.  Guardians  May  Execute  Leases 16 

VI.    Act  Creating  an  Oil  and  Gas  Department 17 

VII.    Waste  of  Natural  Gas  Prohibited 19 

VIII.    Waste  of  Crude  Oil  Prohibited 24 

IX.    Ownership  of  Gas  Defined  and  Output  Restricted 28 

Rules  of  Corporation  Commission 30 

X.    Gas  Pipe  I  ines 42 

XI.    Domestic  Corporations  May  Purchase  Gas  From 

Foreign   Corporations 50 

XII.    Oil  Pipe  Lines 51 

XIII.  Assessment  of  Gas  and  Pipe  Line  Companies 5S 

XIV.  Inspection  Laws 61 

Rules  of  Corporation  Commission 70 

XV.    Meter  Regulations 78 

Rules  of  Corporation  Commission 79 

XVI.    Gross  Production  Tax 82 

XVII.    Oil  and  Gas  Well  Liens 92 

XVIII.    Eminent  Domain  Granted 98 

XIX.    Use  of  Nitro-glycerin  and  Other  Explosives 101 

Rules  of  Corporation  Commission 103 

XX.    Workmen's  Compensation  Law 107 

XXI.    Forfeited  Lease  to  be  Released  from  Record 144 

FORMS. 

NO.  PAGE 

1.  Oil  and  Gas  Lease 145 

2.  Contract  for  Oil  and  Gas  Lease 147 

3.  Assignment  of  Oil  and  Gas  I  ease 148 

4.  Release  of  Oil  and  Gas  Lease 149 

5.  Sale  of  Oil  and  Gas  Royalty 150 

6.  Assignment  of  Oil  and  Gas  Royalty 151 

7.  Mineral  Deed 153 

8.  Drilling  Contract 154 

9.  Stipulation  for  Change  of  Depository 157 

10.    Statement  of  Lien  on  Oil  or  Gaa  Well 158 

U.    Acknowledgements — 

(a)  Individual  Form 159 

( B )  By  Officer  of  Corporation 160 

(c)  Where  Executed  by  Mark 160 

Digest  of  Oil  and  Gas  Cases 161 

Table  of  Cases 243 

Cross-References  to  Statutes  and  Session  Laws 251 

Iud«x    ..255 


PREFACE. 

The  purpose  of  this  work  is  to  provide  for  the  Legal  Profes- 
sion, Oil  Men  and  Public  Officers,  an  accurate  and  quick  refer- 
ence to  all  Oklahoma  laws  relating  to  oil  and  gas,  and  laws 
regulating  pipe  line  companies  doing  business  within  this  State. 
It  is  gratifying  to  know  that  the  Legislature  and  Courts  of 
Oklahoma  have  kept  pace  with  the  rapid  development  of  our 
oil  and  gas  resources.  This  is  evident  from  the  fact  that  at 
least  seventy-five  per  cent  of  our  laws  on  the  subject  have  been 
enacted  since  the  adoption  of  the  Revised  Laws  of  1910;  and 
at  least  fifty  per  cent  of  the  statutes  contained  in  the  code 
revision  have  been  modified,  amended  or  repealed  by  subse- 
quent legislation.  Also,  in  recent  years  numerous  decisions 
have  been  handed  down  by  our  Supreme  Court  construing  the 
oil  and  gas  laws.  These  various  changes  only  prove  the  real 
need  of  a  comprehensive  and  well-annotated  collection  of  the 
laws  of  this  State  relating  to  oil  and  gas;  and  this  need,  it  is 
hoped,  will  be  supplied  by  this  volume. 

The  present  work  is  not  intended  as  a  treatise,  but  as  a  com- 
plete compilation  of  all  Oklahoma  laws  of  a  general  nature 
applicable  to  the  oil  and  gas  industry  of  the  State.  It  includes 
legislation  on  the  subjects  of  Pipe  Line  Laws,  Inspection  and 
Conservation  Laws,  Gross  Production  Tax,  Workmen's  Com- 
pensation Laws,  and  other  important  subjects.  Another  fea- 
ture of  the  work  is  the  publication  of  all  rules  and  regulations 
of  the  Oklahoma  Corporation  Commission  relating  to  oil  and 
gas;  as  well  as  many  carefully  selected  forms. 

The  work  includes  all  laws  on  the  above-named  subjects 
contained  in  the  Revised  Laws  of  Oklahoma  1910,  and  in  the 
Session  Laws  of  1910-11,  1913,  1915,  1916,  1917,  1919  and  1921. 
The  author  has  endeavored  to  furnish  a  complete  list  of  all 
Oklahoma  decisions  citing  or  construing  these  various  statutes 
and  session  laws,  up  to  and  including  Volume  82  of  the  Okla- 
homa Reports,  with  the  Pacific  Reporter  citations  up  to  and 
including  Volume  205.  Where  an  Oklahoma  case  has  been 
affirmed  or  reversed  by  the  U.  S.  Supreme  Court,  the  citation 
is  given. 

The  work  also  contains  a  digest  of  all  oil  and  gas  cases 
decided  by  the  Oklahoma  Supreme  Court,  and  Oklahoma  cases 
decided  by  the  Federal  Courts,  including  Volume  82  Oklahoma 
Reports,  205  Pacific  Reporter,  276  Federal  Reporter,  and  252 
U.  S.  Supreme  Court  Reports. 

Respectfully, 

LEWIS  A.  WALLACE. 

Okmulgcc,  Okla.,  September  15,  1922. 


CHAPTER    I 

LEASING  OF  SCHOOL  AND  OTHER  PUBLIC  LANDS. 

S  1.  Commissioners  of  land  office  may  lease. 

2.  Empowered  to  segregate. 

3.  Term  of  lease. 

4.  Provisions  of  lease. 

5.  Rules  governing  leases. 

6.  Liable  to  surface  owner  for  damages. 

7.  Condemnation  under  certain  conditions. 

8.  Disposition  of  funds. 

9.  Acts  in  conflict  repealed. 

§  1.  Commissioners  of  Land  Office  May  Lease. — The  Commis- 
sioners of  the  Land  Office  are  authorized  to  lease  for  oil  and  gas 
purposes  any  of  the  school  or  other  lands  owned  by  the  State 
of  Oklahoma,  which  such  commissioners  may  deem  valuable  for 
oil  and  gas,  for  the  term  of  five  years  and  as  long  thereafter 
as  oil  or  gas  may  be  produced  therefrom  in  paying  quantities, 
upon  such  terms  and  conditions  and  in  such  quantities  as  the 
commissioners  shall  by  rules  and  regulations  prescribe.  Each 
such  lease  shall  provide  for  the  delivery  to  the  State  of  a 
royalty  of  not  less  than  one-eighth  part  of  the  oil  or  gas  pro- 
duced from  the  leased  premises  or  in  lieu  thereof  the  payment 
to  the  State  of  the  market  value  of  said  royalty  interest,  as 
the  commissioners  may  elect.  Such  leasing  shall  be  made 
by  public  competition  after  not  less  than  thirty  days '  notice  by 
publication  in  two  newspapers  authorized  by  law  to  publish 
legal  notices,  one  of  which  newspapers  shall  be  published  at  the 
State  Capital,  and  the  other  in  the  county  where  the  land  is 
situated,  such  leasing  shall  be  let  by  sealed  bids  and  each  lease 
awarded  to  the  highest  responsible  bidder.  Such  oil  and  gas 
leases  may  be  assigned  only  with  the  consent  and  approval  of 
the  Commissioners  of  the  Land  Office.  Provided,  that  the 
commissioners  have  the  right  to  reject  any  and  all  bids. 
(S.  L.  1917,  p.  462,  Sec.  1.) 


10  OKLAHOMA  OIL  AND  GAS  LAWS 

§  2.  Empowered  to  Segregate. — The  commissioners  are  em- 
powered to  segregate  any  of  the  school  or  public  lands  for 
mineral  purposes  which  the  commissioners  may,  by  order  en- 
tered of  record,  determine  to  be  valuable  for  oil,  gas  or  mineral 
purposes,  and  each  agricultural,  grazing  or  other  lease  of  the 
surface  rights  or  interest  in.  any  land  so  segregated  shall  re- 
serve to  the  State,  its  lessees  or  grantees,  the  right  to  explore, 
drill  and  operate  for  oil  or  gas  on  such  lands  as  well  as  the 
right  to  enter  upon  the  said  lands  and  enjoy  the  mining  rights 
so  reserved. 

(S.  L.  1917,  p.  463,  Sec.  2.) 

§  3.  Term  of  Lease. — All  oil  and  gas  leases  executed  by  the 
Commissioners  of  the  Land  Office  shall  be  for  a  term  of  five 
years  and  as  long  thereafter  as  oil  or  gas  may  be  produced  in 
paying  quantities;  provided,  upon  the  forfeiture,  or  cancella- 
tion or  surrender,  or  expiration  of  lease  by  reason  of  its  termi- 
nation on  account  of  the  five  years '  limit,  provided  for  in  the 
"Enabling  Act,"  or  any  other  cause,  the  School  Land  Comfmis- 
sioners  shall  provide  for  the  leasing  of  such  land  in  the  same 
way  and  in  the  same  manner  that  the  School  Land  Commis- 
sioners lease  land  which  has  never  been  leased.  Provided, 
on  such  leases  which  are  surrendered  or  which  may  expire 
or  which  have  expired,  the  lessee  or  assigns  shall  have  the 
value  of  the  physical  properties  on  such  lease,  which  value 
shall  be  determined  by  a  board  of  appraisers,  especially  ap- 
pointed by  the  School  Land  Commissioners  for  the  appraising 
of  physical  property  of  leases.  Provided,  no  physical  prop- 
erty valuation  shall  be  attached  or  considered  in  the  making 
of  a  lease  on  a  tract  consisting  of  more  than  640  acres.  If 
no  well  shall  be  completed  upon  any  leased  premises  within 
one  year  from  the  date  of  the  lease,  the  lessee  shall  pay  to 
the  State  of  Oklahoma  an  annual  rental  in  advance  of  such 
sum  per  acre  as  the  commissioners  shall  prescribe  in  the  lease, 
which  payment  shall  operate  to  defer  the  completion  of  a  well 
during  the  year  for  which  such  rental  payment  is  made. 
(S.  L.  1917,  p.  463,  Sec.  3.) 


LEASING  OF  SCHOOL  AND  OTHER  PUBLIC  LANDS  11 

§  4.  Provisions  of  Lease. — All  leases  for  oil  and  gas  shall  con- 
tain a  provision  to  drill  one  well  on  each  leased  tract  within 
one  year  from  the  date  of  such  lease  or  on  failure  to  complete 
such  well  to  pay  an  annual  rental  per  acre  as  hereinbefore 
provided.  All  such  leases  shall  further  provide  that  the  lessee 
shall  drill  a  sufficient  number  of  wells  upon  the  leased  lands 
to  offset  all  producing  wells  upon  any  adjoining  or  contiguous 
lands,  and  a  further  provision  that  the  failure  of  the  lessee 
to  diligently  and  in  good  faith  operate  the  leased  premises  for 
oil  and  gas  to  as  full  an  extent  as  other  lands  are  operated 
in  the  general  oil  and  gas  field  where  such  leased  lands  are 
located  shall  forfeit  all  rights  of  the  lessee  under  such  lease. 
Each  lessee  shall  execute  a  bond  to  the  State  of  Oklahoma  with 
sureties  to  the  approval  of  the  commissioners  and  in  such  sum 
as  the  commissioners  shall  prescribe,  conditioned  for  the  faith- 
ful performance  of  the  provisions  of  the  lease  and  for  the 
payment  of  all  recoverable  damages  which  such  lessee  may 
cause  to  the  property,  crops  or  rights  of  the  surface  lessee. 
Each  lease  shall  further  provide  that  in  the  event  the  State 
shall  at  any  time  operate  a  refinery  for  the  refining  of  crude 
petroleum  or  the  extraction  of  any  of  its  products  or  by-prod- 
ucts, the  State  shall  have  the  preference  right  to  purchase 
and  take  the  production  or  output  of  any  oil  or  gas  well  at 
the  prevailing  market  price  thereof,  upon  the  commissioners 
serving  written  notice  upon  the  owners  of  any  well,  of  the 
purpose  and  readiness  of  the  State  to  take  such  production. 
(S.  L.  1917,  p.  464,  Sec.  4.) 

§  5.  Rules  Governing  Leases. — The  Commissioners  of  the 
Land  Office  may  adopt  and  promulgate  appropriate  rules  and 
regulations  for  carrying  into  effect  the  provisions  of  this  act, 
but  no  restrictions  or  prohibitions  against  any  bidder  or  pro- 
spective bidder  shall  be  made  other  than  as  provided  in  this  act. 
(S.  L.  1917,  p.  465,  Sec.  5.) 

§  6.  Liable  to  Surface  Owner  for  Damages. — The  lessee,  un- 
der any  oil  or  gas  lease  executed  by  the  Commissioners  of  the 


12  OKLAHOMA  On.  AND  GAS  LAWS 

Land  Office  shall  be  liable  to  the  surface  owner  or  lessee  for 
all  injury,  damage  or  loss  occurring  to  the  surface  interest, 
interest  in  such  lands  or  to  any  building,  crops  or  improve- 
ments, or  other  property,  located  upon  or  used  in  connection 
with  said  land. 

(S.  L.  1917,  p.  465,  Sec.  6.) 

§  7.  Condemnation  Under  Certain  Conditions. — Should  the 
lessee  or  owner  of  the  surface  interest  and  the  lessee  of  the 
oil  and  gas  interest  specified  in  this  article  be  unable  to  agree 
upon  the  damage  and  loss  sustained  by  such  surface  lessee 
or  owner  by  such  lessee  of  the  oil  and  gas  interests  therein, 
the  latter  may  condemn  the  same  for  such  purpose  under  the 
law  of  eminent  domain  to  like  extent  and  in  the  same  manner 
and  upon  the  same  procedure  and  remedies  as  is  provided  for 
the  assessment  of  damages  and  compensation  to  the  owner  of 
the  fee  in  case  of  condemnation  for  railway  purposes. 
(Sec.  7201,  Rev.  Laws  1910.) 

§  8.  Disposition  of  Funds. — All  funds  arising  from  bonuses, 
royalties  or  rentals  for  oil  and  gas  leases,  shall  be  carried  into 
and  credited  to  the  permanent  funds  for  the  use  and  purpose 
designated  in  the  grant  of  such  lands  by  Congress  to  the  State 
of  Oklahoma  and  all  such  funds  shall  be  kept,  handled  and 
used  in  like  manner  as  other  moneys  belonging  to  said  perma- 
nent funds. 

(S.  L.  1917,  p.  465,  Sec.  7.) 

§  9.  Acts  in  Conflict  Repealed. — All  acts  or  parts  of  acts  in- 
consistent herewith,  are  hereby  repealed.1 
(S,  L.  1917,  p.  465,  Sec.  8.) 


1  Sections  7195  to  7203,  Rev.  Laws  1910,  (except  Sec.  7201)  are  la 
conflict  with  the  provisions  of  the  foregoing  act  and  are  therefore  re- 
pealed. 


CHAPTER    II. 
STATE  MAY  LEASE  RIPARIAN  OIL  LANDS. 

{ 10.  Leasing  authorized. 
11.  Mode  of  leasing. 

§  10.  Leasing  Authorized. — The  Commissioners  of  the  Lanfl 
Office  are  hereby  authorized  to  lease  for  oil  and  gas  purposes 
all  lands  between  mean  high  water  mark  in  all  streams  or 
rivers  of  two  chains  or  over;  all  such  streams  are  declared 
the  property  of  the  State  of  Oklahoma. 
(S.  L.  1919,  p.  293,  Sec.  1.) 

§  11.  Mode  of  Leasing. — Said  lands  are  to  be  leased  under 
the  same  provisions  as  the  school  and  other  lands  of  the  State 
of  Oklahoma. 

(S.  L.  1919.  p.  293,  Sec.  2.) 


18 


CHAPTER    III. 

STATE  MAY  LEASE  PENAL  OR  ELEEMOSYNARY 

LANDS. 

§  12.  Board  of  Affairs  to  lease. 

§  12.  Board  of  Affairs  to  Lease.— The  State  Board  of  Public 
Affairs  is  hereby  authorized  to  lease  for  drilling  and  develop- 
ment of  oil  or  gas,  or  both,  any  of  the  lands  belonging  to  the 
State,  on  which  are  located  penal  or  eleemosynary  institutions, 
or  are  connected  with  or  a  part  of  the  lands  of  such  institutions. 
Such  leasing  to  be  mjade  by  public  competition  after  not  less 
than  thirty  days'  advertisement,  as  now  provided  by  law  for 
the  leasing  of  other  State  or  school  lands  for  oil  and  gas 
purposes,  and  in  such  manner  as  said  board  may  by  rule  pre- 
scribe. All  such  leasing  must  be  on  sealed  bids  and  awarded  to 
the  highest  responsible  bidder,  and  for  such  period  as  said 
Board  of  Public  Affairs  may  determine,  provided  said  board 
may  reject  any  and  all  bids.  The  oil  and  gas  interest  in  such 
land  hereby  authorized  to  be  leased,  is  to  the  extent  and  in 
the  manner  that  a  private  owner  of  lands  in  fee,  may  in  his 
own  right,  execute  such  lease  or  grant,  and  provided  further, 
that  such  lease  before  becoming  effective  or  having  validity, 
shall  be  approved  by  the  Governor  of  the  State. 
(S.  L.  1917,  p.  407,  Sec.  1.) 


14 


CHAPTER    IV. 

COUNTY,  TOWN  OR  SCHOOL  DISTRICT  MAY  LEASE. 

1 13.  Leases  authorized. 

14.  How  executed. 

15.  Repealing  clause. 

§  13.  Leases  Authorized. — Any  county,  town,  school  district 
or  township  that  now  owns  or  may  hereafter  acquire  any 
land,  other  than  town  or  city  lots,  under  the  control  of  the 
board  of  county  commissioners,  board  of  town  trustees,  direc- 
tors or  board  of  education,  is  hereby  authorized  and  empowered 
to  enter  into  a  valid  contract  to  lease  such  land  to  any  person, 
association  or  corporation  for  a  term  of  years  not  to  exceed 
ten  years,  for  the  purpose  of  constructing  permanent  improve- 
ments thereon,  or  for  oil  and  gas  development.  This  law  does 
not  apply  to  agricultural  purposes. 
(S.  L.  1921,  p.  214,  Sec.  1.) 

§  14.  How  Executed. — The  lease  mentioned  in  the  preceding 
section  shall  be  executed  only  after  notice  by  publication  for 
two  weeks  in  a  newspaper  of  general  circulation  in  the  county 
in  which  the  land  is  situated,  and  a  public  sale  thereof  to  the 
highest  and  best  bidder.  Provided,  that  all  leases  heretofore 
executed  by  the  board  of  county  commissioners,  board  of 
town  trustees,  directors  of  school  districts,  or  board  of  educa- 
tion, covering  lands  under  their  control,  are  hereby  validated, 
and  nothing  in  this  act  shall  be  construed  to  invalidate  any 
such  lease. 

(S.  L.  1921,  p.  214,  Sec.  2.) 

§  15.  Repealing  Clause. — All  laws  or  parts  of  laws  in  conflict 
herewith,  are  hereby  repealed. 

(S.  L.  1921,  p.  214,  Sec.  3.)  This  act  repeals  Chapter  179, 
Session  Laws  1919,  page  253,  as  same  is  in  conflict  here- 
with. 

15 


CHAPTER    V. 

GUARDIANS  MAY  EXECUTE  LEASES. 

1 16.  Guardian  may  lease  for  oil  or  gas  purposes. 
17.  Former  leases  legalized. 

§  16.  Guardian  May  Lease  for  Oil  or  Gas  Purposes. — Guard- 
ians of  infants  and  insane  persons  are  hereby  empowered 
to  lease  and  grant  mineral  oil  and  mineral  gas,  in  consideration 
of  a  royalty  or  part  or  portion  of  the  production  thereof,  and 
under  the  same  procedure  in  the  county  court,  as  now  provided 
by  law,  where  such  consideration  is  money.1 

(Sec.  6547,  Rev.  Laws  1910.)     Cited  and  construed:     Cabin 

Valley  Mining  Co.  vs.  Hall,  53  Okla.  760,  155  Pac.  570. 

holding  that  a  guardian  may  execute  an  oil  and  gas  lease 

for  a  period  of  years  extending  beyond  the  minority  of 

his  ward. 

§  17.  Former  Leases  Legalized. — All  such  leases  and  grants 
of  mineral  oil  and  gas  heretofore  made  and  confirmed  by  the 
county  court,  in  consideration  of  a  royalty,  part  or  portion  of 
the  production  thereof,  are  hereby  legalized. 
(Sec.  6548,  Rev.  Laws  1910.) 


x"Rule  9. — No  oil  and  gas,  or  other  mineral  lease,  covering  lands 
belonging  to  minors  or  incompetents,  will  be  approved  except  after 
sale  in  open  court  to  the  highest  and  best  responsible  bidder.  All  pe- 
titions for  the  approval  of  oil  and  gas  leases  shall  be  filed  at  least 
five  (5)  days  before  the  same  are  sold  as  provided  herein  and  notice 
of  such  sale  must  be  given  by  posting  and  by  publication  where  pub- 
lication is  practicable,  and  shall  be  on day  of  each •". 

(Rule  9  of  Supreme  Court,  47  Okla.,  171  Pac.) 


16 


CHAPTER    VI. 

ACT  CREATING  AN  OIL  AND  GAS  DEPARTMENT. 

518.  Oil  and  gas  department  established. 

19.  Jurisdiction  conferred  upon  Corporation  Commission. 

20.  Rules  and  regulations  for  plugging  wells. 

21.  Oil  and  gas  inspection. 

22.  Fees  of  inspector. 

23.  Acts  in  conflict  repealed. 

§  18.  Oil  and  Gas  Department  Established. — The  Corporation 
Commission  is  hereby  empowered  and  authorized  to  create  and 
establish  an  oil  and  gas  department  under  the  jurisdiction  and 
supervision  of  the  Corporation  Commission,  and  is  hereby 
authorized  to  appoint  with  the  approval  and  consent  of  the 
Governor,  a  chief  oil  and  gas  conservation  agent  who  shall  have 
charge  of  the  oil  and  gas  department  herein  authorized. 

(S.  L.  1917,  p.  385,  Sec.  1.)  Cited  and  construed:  LOT* 
v.  Boyle,  —  Okla.  — ,  180  Pac.  705,  holding  act  consti- 
tutional. 

§  19.  Jurisdiction  Conferred  Upon  Corporation  Commis- 
sion.— All  authority  and  duties  now  conferred  upon  the  Corpo- 
ration Commission  or  other  department  of  the  State  govern- 
ment in  reference  to  the  conservation  of  oil  and  gas  and  the 
drilling  and  operating  oil  and  gas  wells  and  the  construc- 
tion and  regulation  of  oil  and  gas  pipe  lines,  are  hereby  con- 
ferred exclusively  upon  the  Corporation  Commission. 
(S.  L.  1917,  p.  385,  Sec.  2.) 

§  20.  Rules  and  Regulations  for  Plugging  Wells.— The  Cor- 
poration Commission  is  hereby  authorized  to  prescribe  rules 
and  regulations  for  the  plugging  of  all  abandoned  oil  and  gas 
wells.  The  same  shall  be  plugged  under  the  direction  and 
supervision  of  the  conservation  agents  of  the  Corporation  Com- 

17 


18  OKLAHOMA  OIL  AND  GAS  LAWS 

mission  as  may  be  prescribed  by  the  Corporation  Commission. 
All  orders  and  regulations  in  reference  to  plugging  wells 
shall  be  made  after  general  hearing  as  now  prescribed  by  law 
for  the  promulgation  of  orders  by  the  Corporation  Commission. 
(S.  L.  1917,  p.  385,  Sec.  3.) 

§  21.  Oil  and  Gas  Inspection. — Jurisdiction  is  hereby  con- 
ferred upon  the  Corporation  Commission  to  inspect  all  oils 
and  liquids,  the  product  of  petroleum  or  other  bituminous  sub- 
stances or  into  which  the  product  of  petroleum  enters,  by  what- 
ever name  called,  which  may  be  or  can  be  used  for  illuminating, 
heating,  or  power  purposes,  manufactured  in  this  State  or 
brought  into  it,  before  the  same  are  consumed,  used,  sold  or 
offered  to  be  sold  or  disposed  of  to  merchants,  consumers,  or 
other  persons  within  this  State,  and  the  Corporation  Commis- 
sion is  hereby  authorized  to  appoint,  with  the  approval  of  the 
Governor,  oil  inspectors,  who  shall  perform  the  duties  now  pre- 
scribed by  Chapter  96,  Session  Laws  1915,  and  to  perform  such 
other  duties  as  may  be  required  by  general  rules  and  regula- 
tions of  the  Corporation  Commission. 

(S.  L.  1917,  p.  386,  Sec.  4.)     Compare  with  Sec.  90  herein. 

§  22.  Fees  of  Inspector. — The  oil  inspector  hereby  authorized 
shall  receive  the  compensation  now  provided  in  Chapter  96, 
Session  Laws  1915,  for  the  inspection  of  oils  and  liquids. 

(S.  L.  1917,  p.  386,  Sec.  5.)    Compare  with  Sec.  89  herein. 

§  23.  Acts  in  Conflict  Repealed. — All  acts  and  parts  of  acts  in 
conflict  herewith  are  hereby  repealed.1 
(S.  L.  1917,  p.  386,  Sec.  6.) 


1  The  provisions  contained  in  the  foregoing  chapter,  together  with 
the  rules  and  regulations  of  the  Corporation  Commission,  with  refer- 
ence to  the  regulation  and  inspection  of  wells,  have  revised,  amended 
or  repealed  the  provisions  of  Sections  4319  to  4329,  Rev.  Laws  1910; 
therefore,  said  sections  have  not  been  compiled  in  this  work,  but  have 
been  omitted  so  as  to  avoid  confusion. 


CHAPTER    VII. 

WASTE  OF  NATURAL  GAS  PROHIBITED. 

§  24.  Waste  prohibited. 

25.  Waste  defined. 

26.  Conservation  of  gas. 

27.  Excess  gas  supply. 

28.  Fair  treatment  by  common  purchaser. 

29.  Hearings  before  Corporation  Commission. 

30.  Appeals  to  Supreme  Court. 

31.  Regulations  for  prevention  of  waste. 

32.  Acceptance  by  pipe  lines. 

33.  Duties  of  Mine  Inspector  unchanged. 

34.  Validity  of  act. 

35.  Penalties  for  violation. 

§  24.  Waste  Prohibited. — That  the  production  of  natural  gas 
in  the  State  of  Oklahoma,  in  such  manner,  and  under  such 
conditions  as  to  constitute  waste,  shall  be  unlawful. 

(S.  L.  1915,  p.  398,  Sec.  1.)  Cited:  City  of  Pawhuska  v. 
Pawhuska  Oil  &  Gas  Co.,  64  Okla.  214,  166  Pac.  1058. 
Love  v.  Boyle,  —  (Okla.)  — ,  180  Pac.  705. 

§  25.  Waste  Defined. — That  the  term  waste,  as  used  herein 
in  addition  to  its  ordinary  meaning,  shall  include  escape  of 
natural  gas  in  commercial  quantities  into  the  open  air,  the  in- 
tentional drowning  with  water  of  a  gas  stratum  capable  of 
producing  gas  in  commercial  quantities,  underground  waste, 
the  permitting  of  any  natural  gas  well  to  wastefully  burn  and 
the  wasteful  utilization  of  such  gas. 
(S.  L.  1915,  p.  398,  Sec.  2.) 

§  26.  Conservation  of  Gas. — That  whenever  natural  gas  in 
commercial  quantities,  or  a  gas  bearing  stratum,  known  to 
contain  natural  gas  in  such  quantity,  is  encountered  in  any 
well  drilled  for  oil  or  gas  in  this  State,  such  gas  shall  be  con- 
fined to  its  original  stratum  until  such  time  as  the  same  can 

19 


20  OKLAHOMA  OIL  AND  GAS  LAWS 

be  produced  and  utilized  without  waste,  and  all  such  strata 
shall  be  adequately  protected  from  infiltrating  waters.  Any 
unrestricted  flow  of  natural  gas  in  excess  of  two  million  cubic 
feet  per  twenty-four  hours  shall  be  considered  a  commercial 
quantity  thereof ;  provided,  that  if  in  the  opinion  of  the  Corpo- 
ration Commission,  gas  of  a  lesser  quantity  shall  be  of  com- 
mercial value,  said  commission  sh&ll  have  authority  to  require 
the  conservation  of  said  gas  in  accordance  with  the  provisions 
of  this  act;  and  provided,  further,  the  gauge  of  the  capacity 
of  any  gas  well  shall  not  be  taken  until  such  well  has  been 
allowed  an  open  flow  for  the  period  of  three  days. 
(S.  L.  1915,  p.  398,  Sec.  3.) 

§  27.  Excess  Gas  Supply. — That  whenever  the  full  produc- 
tion from  any  common  source  of  supply  of  natural  gas  in  this 
State  is  in  excess  of  the  market  demands,  then  any  person,  firm 
or  corporation,  having  the  right  to  drill  into  and  produce  gas 
from  any  such  common  source  of  supply,  may  take  therefrom 
only  such  proportion  of  the  natural  gas  that  may  be  marketed 
without  waste,  as  the  natural  flow  of  the  well  or  wells  owned 
or  controlled  by  any  such  person,  firm  or  corporation  bears 
to  the  total  natural  flow  of  such  common  source  of  supply 
having  due  regard  to  the  acreage  drained  by  each  well,  so  as 
to  prevent  any  such  person,  firm  or  corporation  securing  any 
unfair  proportion  of  the  gas  therefrom;  provided,  that  the 
Corporation  Commission  may  by  proper  order,  permit  the 
taking  of  a  greater  amount  whenever  it  shall  deem  such  taking 
reasonable  or  equitable.  The  said  commission  is  authorized 
and  directed  to  prescribe  rules  and  regulations  for  the  de- 
termination of  the  natural  flow  of  any  such  well  or  wells,  and 
to  regulate  the  taking  of  natural  gas  from  any  or  all  such 
common  sources  of  supply  within  the  State,  so  as  to  prevent 
waste,  protect  the  interests  of  the  public,  and  of  all  those 
having  a  right  to  produce  therefrom,  and  to  prevent  unrea- 
sonable discrimination  in  favor  of  any  one  such  common  source 
of  supply  as  against  another. 

(a  L.  1915,  p.  399,  Sec.  4.)     Compare  with  Sec.  47  herein. 


WASTE  OP  NATURAL  GAS  PROHIBITED  21 

§  28.  Fair  Treatment  by  Common  Purchaser. — That  every 
person,  firm  or  corporation,  now  or  hereafter  engaged  in  the 
business  of  purchasing  and  selling  natural  gas  in  this  State, 
shall  be  a  common  purchaser  thereof,  and  shall  purchase  all 
of  the  natural  gas  which  may  be  offered  for  sale,  and  which 
may  reasonably  be  reached  by  its  trunk  lines,  or  gathering 
lines  without  discrimination  in  favor  of  one  producer  as  against 
another,  or  in  favor  of  any  one  source  of  supply  as  against  an- 
other save  as  authorized  by  the  Corporation  Commission  after 
due  notice  and  hearing ;  but  if  any  such  person,  firm  or  corpo- 
ration, shall  be  unable  to  purchase  all  the  gas  so  offered,  then 
it  shall  purchase  natural  gas  from  each  producer  ratably.  It 
shall  be  unlawful  for  any  such  common  purchaser  to  discrimi- 
nate between  like  grades  and  pressures  of  natural  gas,  or  in 
favor  of  its  own  production,  or  of  production  in  which  it  may 
be  directly  or  indirectly  interested,  either  in  whole  or  in  part, 
but  for  the  purpose  of  prorating  the  natural  gas  to  be  mar- 
keted, such  production  shall  be  treated  in  like  manner  as  that 
of  any  other  producer  or  person,  and  shall  be  taken  only  in 
the  ratable  proportion  that  such  production  bears  to  the  total 
production  available  for  marketing.  The  Corporation  Com- 
mission shall  have  authority  to  make  regulations  for  the  de- 
livery, metering  and  equitable  purchasing  and  taking  of  all 
such  gas  and  shall  have  authority  to  relieve  any  such  common 
purchaser,  after  due  notice  and  hearing,  from  the  duty  of 
purchasing  gas  of  an  inferior  quality  or  grade. 

(S.  L.  1915,  p.  400,  Sec.  5.)     Compare  with  Sec.  48  herein. 

§29.  Hearings  Before  Corporation  Commission.— That  any 
person,  firm  or  corporation,  or  the  Attorney  General,  on  behalf 
of  the  State  may  institute  proceedings  before  the  Corporation 
Commission,  or  apply  for  a  hearing  before  said  commission, 
upon  any  question  relating  to  the  enforcement  of  this  act ;  and 
jurisdiction  is  hereby  conferred  upon  said  commission  to  hear 
and  determine  the  same,  said  commission  shall  set  a  time  and 
place  when  such  hearing  shall  be  had  and  give  reasonable 
notice  thereof  to  all  persons  or  classes  interested  therein  by 


22  OKLAHOMA  OIL  AND  GAS  LAWS 

publication  in  some  newspaper  or  newspapers  having  general 
circulation  in  the  State,  and  shall  in  addition  thereto  cause 
notice  to  be  served  in  writing  upon  any  person,  firm  or  corpo- 
ration, complained  against  in  the  manner  now  provided  by  law 
for  serving  summons  in  civil  actions.  In  the  exercise  and  en- 
forcement of  such  jurisdiction  said  commission  is  authorized 
to  summon  witnesses,  make  ancillary  orders,  and  use  such 
mesne  and  final  process  including  inspection  and  punishment 
as  for  contempt,  analogous  to  proceedings  under  its  control 
over  public  service  corporations  as  now  provided  by  law. 
(S.  L.  1915,  p.  400,  Sec.  6.) 

§  30.  Appeals  to  Supreme  Court. — That  appellate  jurisdic- 
tion is  hereby  conferred  upon  the  Supreme  Court  of  this  State 
to  review  the  orders  of  said  commission  made  under  this  act. 
Such  appeal  may  be  taken  by  any  person,  firm  or  corporation, 
shown  by  the  record  to  be  interested  therein,  in  the  same  man- 
ner and  time  as  appeals  are  allowed  by  law  from  other  orders 
of  the  Corporation  Commission.  Said  orders  so  appealed  from, 
may  be  superseded  by  the  commission  or  by  the  Supreme  Court 
upon  such  terms  and  conditions  as  may  be  just  and  equitable. 
(S.  L.  1915,  p.  401,  Sec.  7.) 

§  31.  Regulations  for  Prevention  of  Waste. — That  the  Corpo- 
ration Commission  shall  have  authority  to  make  regulations 
for  the  prevention  of  waste  of  natural  gas,  and  for  the  pro- 
tection of  all  natural  gas,  fresh  Avater,  and  oil  bearing  strata 
encountered  in  any  well  drilled  for  oil  or  natural  gas,  and  to 
make  such  other  rules  and  regulations,  and  to  employ  or  ap- 
point such  agents,  with  the  consent  of  the  Governor,  as  may 
be  necessary  to  enforce  this  act. 
(S.  L.  1915,  p.  401,  Sec.  8.) 

§  32.  Acceptance  by  Pipe  Lines. — Before  any  person,  firm  or 
corporation  shall  have,  possess,  enjoy  or  exercise  the  right 
of  eminent  domain,  right  of  way,  right  to  locate,  maintain, 
construct  or  operate  pipe  lines,  fixtures,  or  equipments  belong- 


WASTE  OP  NATURAL  GAS  PROHIBITED  23 

ing  thereto  or  used  in  connection  therewith,  for  the  carrying 
or  transportation  of  natural  gas,  whether  for  hire  or  other- 
wise, or  shall  have  the  right  to  engage  in  the  business  of  pur- 
chasing, piping,  or  transporting  natural  gas,  as  a  public  service, 
or  otherwise,  such  person,  firm  or  corporation  shall  file  in  the 
office  of  the  Corporation  Commission  a  proper  and  explicit 
authorized  acceptance  of  the  provisions  of  this  act. 
(S.  L.  1915,  p.  402,  Sec.  9.) 

§  33.  Duties  of  Mine  Inspector  Unchanged. — That  nothing 
contained  in  this  act  shall  be  construed  to  interfere  with  any 
duties  now  imposed  by  law  upon  the  Chief  Mine  Inspector 
of  the  State  or  his  deputies. 

(S.  L.  1915,  p.  402,  Sec.  10.)     See  Sec.  19  herein. 

§  34.  Validity  of  Act. — That  the  invalidity  of  any  section, 
subdivision,  clause,  or  sentence  of  this  act  shall  not  in  any 
manner  affect  the  validity  of  the  remaining  portion  thereof. 
(S.  L.  1915,  p.  402,  Sec.  11.) 

§  35.  Penalties  for  Violation. — That  in  addition  to  any  pen- 
alty that  may  be  imposed  by  the  Corporation  Commission  for 
contempt,  any  person,  firm,  or  corporation,  or  any  officer,  agent 
or  employee  thereof,  directly  or  indirectly  violating  the  pro- 
visions of  this  act,  shall  be  guilty  of  a  misdemeanor,  and  upon 
conviction  thereof,  in  a  court  of  competent  jurisdiction,  shall 
be  punished  by  a  fine  in  any  sum  not  to  exceed  five  thousand 
dollars  ($5,000.00),  or  by  imprisonment  in  the  county  jail  not  to 
exceed  thirty  (30)  days,  or  by  both  such  fine  and  imprisonment. 
(S.  L.  1915,  p.  402,  Sec.  12.) 


CHAPTER    VIII. 

WASTE  OF  CRUDE  OIL  PROHIBITED. 

S  36.  Waste  prohibited. 

37.  Production  and  sale  regulated. 

38.  Waste  defined. 

39.  Discrimination  of  purchaser  prohibited. 

40.  Wells  gauged. 

41.  Hearings  before  Corporation  Commission. 

42.  Appeals  to  Supreme  Court. 

43.  Penalty  for  violation. 

44.  State  may  secure  receiver. 

45.  Validity  of  act 

§  36.  Waste  Prohibited. — That  the  production  of  crude  oil  or 
petroleum  in  the  State  of  Oklahoma,  in  such  manner  and  under 
such  conditions  as  to  constitute  waste,  is  hereby  prohibited. 
(S.  L.  1915,  p.  35,  Sec.  1.)     Act  cited:  Love  v.  Boyle,  — 
(Okla.)  — ,  180  Pac.  705. 

§  37.  Production  and  Sale  Regulated. — That  the  taking  of 
crude  oil  or  petroleum  from  any  oil-bearing  sand  or  sands  in 
the  State  of  Oklahoma  at  a  time  when  there  is  not  a  market 
demand  therefor  at  the  well  at  a  price  equivalent  to  the  actual 
value  of  such  crude  oil  or  petroleum  is  hereby  prohibited,  and 
the  actual  value  of  such. crude  oil  or  petroleum  at  any  time 
shall  be  the  average  value  as  near  as  may  be  ascertained  in 
the  United  States  at  retail  of  the  by-products  of  such  crude  oil 
or  petroleum  when  refined  less  the  costs  and  a  reasonable 
profit  in  the  business  of  transporting,  refining  and  market- 
ing the  same,  and  the  Corporation  Commission  of  this  State  is 
hereby  invested  (vested?)  with  the  authority  and  power  to  in- 
vestigate and  determine  from  time  to  time  the  actual  value  of 
such  crude  oil  or  petroleum  by  the  standard  herein  provided, 
and  when  so  determined  said  commission  shall  promulgate  its 
findings  by  its  orders  duly  made  and  recorded,  and  publish 
the  same  in  some  newspaper  of  general  circulation  in  the  State. 
(S.  L.  1915,  p.  35,  Sec.  2.) 

24 


WASTE  OP  CRUDE  OIL  PROHIBITED  25 

§  38.  Waste  Defined. — That  the  term  "waste"  as  used  herein, 
in  addition  to  its  ordinary  meaning,  shall  include  economic 
waste,  underground  waste,  surface  waste,  and  waste  incident 
to  the  production  of  crude  oil  or  petroleum  in  excess  of  trans- 
portation or  marketing  facilities  or  reasonable  market  de- 
mands. The  Corporation  Commission  shall  have  authority  to 
make  rules  and  regulations  for  the  prevention  of  such  wastes, 
and  for  the  protection  of  all  fresh  water  strata,  and  oil  and 
gas-bearing  strata,  encountered  in  any  well  drilled  for  oil. 
(S.  L.  1915,  p.  36,  Sec.  3.) 

§  39.  Discrimination  of  Purchaser  Prohibited. — That  when- 
ever the  full  production  from  any  common  source  of  supply  of 
crude  oil  or  petroleum  in  this  State  can  only  be  obtained  under 
conditions  constituting  waste,  as  herein  defined,  then  any  per- 
son, firm  or  corporation,  having  the  right  to  drill  into  and 
produce  oil  from  any  such  common  source  of  supply,  may  take 
therefrom  only  such  proportion  of  all  crude  oil  and  petroleum 
that  may  be  produced  therefrom,  without  waste,  as  the  produc- 
tion of  the  well  or  wells  of  any  such  person,  firm  or  corpora- 
tion, bears  to  the  total  production  of  such  common  source  of 
supply.  The  Corporation  Commission  is  authorized  to  so  regu- 
late the  taking  of  crude  oil  or  petroleum  from  any  or  all  such 
common  sources  of  supply,  within  the  State  of  Oklahoma,  as  to 
prevent  the  inequitable  or  unfair  taking,  from  a  common 
source  of  supply,  of  such  crude  oil  or  petroleum,  by  any  person, 
firm  or  corporation,  and  to  prevent  unreasonable  discrimination 
in  favor  of  any  one  such  common  source  of  supply  as  against 
another. 

(S.  L.  1915,  p.  3«,  Sec.  4.) 

§  40.  Wells  Gauged. — That  for  the  purpose  of  determining 
such  production,  a  gauge  of  each  well  shall  be  taken  under 
rules  and  regulations  to  be  prescribed  by  the  Corporation  Com- 
mission, and  said  commission  is  authorized  and  directed  to 
make  and  promulgate,  by  proper  order,  such  other  rules  and 


26  OKLAHOMA  OIL  AND  GAS  LAWS 

regulations,  and  to  employ  or  appoint  such  agents  with  the 
consent  of  the  Governor,  as  may  be  necessary  to  enforce  this 
act. 

(S.  L.  1915,  p.  37,  Sec.  5.) 

§  41.  Hearings  Before  Corporation  Commission. — That  any 
person,  firm  or  corporation,  or  the  Attorney  General  on  behalf 
of  the  State,  niay  institute  proceedings  before  the  Corporation 
Commission,  or  apply  for  a  hearing  before  said  commission, 
upon  any  question  relating  to  the  enforcement  of  this  act,  and 
jurisdiction  is  hereby  conferred  upon  said  commission  to  hear 
and  determine  the  same.  Said  commission  shall  set  a  time 
and  place,  when  and  where  such  hearing  shall  be  had  and 
give  reasonable  notice  thereof  to  all  persons  or  classes  inter- 
ested therein,  by  publication  in  some  newspaper  or  newspapers 
having  general  circulation  in  the  State,  and  in  addition  there- 
to, shall  cause  reasonable  notice  in  writing  to  be  served  per- 
sonally on  any  person,  firm  or  corporation  complained  against. 
In  the  exercise  and  enforcement  of  such  jurisdiction,  said  com- 
mission is  authorized  to  determine  any  question  or  fact  arising 
hereunder,  and  to  summon  witnesses,  make  ancillary  orders, 
and  use  mesne  and  final  process,  including  inspection  and  pun- 
ishment as  for  contempt,  analogous  to  proceedings  under  its 
control  over  public  service  corporations,  as  now  provided  by 
law. 

(S.  L.  1915,  p.  37,  Sec.  6.) 

§  42.  Appeals  to  Supreme  Court. — That  appellate  jurisdic- 
tion is  hereby  conferred  upon  the  Supreme  Court  in  this  State 
to  review  the  action  of  said  Commission  in  making  any  order, 
or  orders,  under  this  act.  Such  appeal  may  be  taken  by  any 
person,  firm  or  corporation,  shown  by  the  record  to  be  inter- 
ested therein,  in  the  same  manner  and  time  as  appeals  are  al- 
lowed by  law  from  other  orders  of  the  Corporation  Commis- 
sion. Said  orders  so  appealed  from  shall  not  be  superseded 
by  the  mere  fact  of  such  appeal  being  taken,  but  shall  be  and 


WASTE  OF  CRUDE  OIL  PROHIBITED  27 

remain  in  full  force  and  effect  until  legally  suspended  or  set 
aside  by  the  Supreme  Court. 

(S.  L.  1915,  p.  38,  Sec.  7.) 

§  43.  Penalty  for  Violation. — That  in  addition  to  any  penalty 
that  may  be  imposed  by  the  Corporation  Commission  for  con- 
tempt, any  person,  firm  or  corporation,  or  any  officer,  agent 
or  employee  thereof,  directly  or  indirectly  violating  the  pro- 
visions of  this  act,  shall  be  guilty  of  a  misdemeanor,  and  upon 
conviction  thereof,  in  a  court  of  competent  jurisdiction,  shall 
be  punished  by  a  fine  in  any  sum  not  to  exceed  five  thousand 
dollars  ($5,000.00),  or  by  imprisonment  in  the  county  jail  not  to 
exceed  thirty  (30)  days,  or  by  both  fine  and  imprisonment. 
(S.  L.  1915,  p.  38,  Sec.  8.) 

§  44.  State  May  Secure  Receiver. — That  in  addition  to  any 
penalty  imposed  under  the  preceding  section,  any  person,  firm 
or  corporation,  violating  the  provisions  of  this  act,  shall  be  sub- 
ject to  have  his  or  its  producing  property  placed  in  the  hands 
of  a  receiver  by  a  court  of  competent  jurisdiction,  at  the  suit 
of  the  State  through  the  Attorney  General,  or  any  county  at- 
torney, but  such  receivership  shall  only  extend  to  the  operating 
of  producing  wells  and  the  marketing  of  the  production  thereof, 
under  the  provisions  of  this  act. 
(S.  L.  1915,  p.  38,  Sec.  9.) 

§  45.  Validity  of  Act. — That  the  invalidity  of  any  section, 
subdivision,  clause  or  sentence  of  this  act  shall  not  in  any 
manner  effect  the  validity  of  the  remaining  portion  thereof. 
(S.  L.  1915,  p.  39,  Sec.  10.) 


CHAPTER    IX. 

OWNERSHIP  OF  GAS  DEFINED  AND  OUTPUT 
RESTRICTED. 

§  46.  Ownership  defined. 

47.  Restrictions  on  output. 

48.  Purchasers  of  output. 

49.  Penalty  for  taking  more  than  share  of  gas. 

50.  Punishment  for  violations  of  act. 


§  46.  Ownership  Defined.  —  All  natural  gas  under  the  surface 
of  any  land  in  this  State  is  hereby  declared  to  be  and  is  the 
property  of  the  owners,  or  gas  lessees,  of  the  surface  under 
which  gas  is  located  in  its  original  state. 
(S.  L.  1913,  p.  439,  Sec.  1.) 

§  47.  Restrictions  on  Output.  —  Any  owner,  or  oil  and  gas 
lessee,  of  the  surface,  having  the  right  to  drill  for  gas  shall 
have  the  right  to  sink  a  well  to  the  natural  gas  underneath  the 
same  and  to  take  gas  therefrom  until  the  gas  under  such  sur- 
face is  exhausted.  In  case  other  parties,  having  the  right  to 
drill  into  the  common  reservoir  of  gas,  drill  a  well  or  wells 
into  the  same,  then  the  amount  of  gas  each  owner  may  take 
therefrom  shall  be  proportionate  to  the  natural  flow  of  his 
well  or  wells  to  the  natural  flow  of  the  well  or  wells  of  such 
other  owners  of  the  same  common  source  of  supply  of  gas,  such 
natural  flo\v  to  be  determined  by  any  standard  measurement  at 
the  beginning  of  each  calendar  month  ;  provided,  that  not  more 
than  twenty-five  per  cent  of  the  natural  flow  of  any  well  shall 
be  taken,  unless  for  good  cause  shown,  and  upon  notice  and 
hearing  the  Corporation  Commission  may,  by  proper  order,  per- 
mit the  taking  of  a  greater  amount.  The  drilling  of  a  gas 
well  or  wells  by  any  owner  or  lessee  of  the  surface  shall  be 

28 


OWNERSHIP  OP  GAS  DEFINED  AND  OUTPUT  RESTRICTED    29 

regarded  as  reducing  to  possession  his  share  of  such  gas  as  is 
shown  by  his  well.1 

(S.  L.  1913,  p.  440,  Sec.  2.) 

§  48.  Purchasers  of  Output.— Any  person,  firm  or  corpora- 
tion, taking  gas  from  a  gas  field,  except  for  purposes  of  devel- 
oping a  gas  or  oil  field,  and  operating  oil  wells,  and  for  the 
purpose  of  his  own  domestic  use,  shall  take  ratably  from  each 
owner  of  the  gas  in  proportion  to  his  interest  in  said  gas,  upon 
such  terms  as  may  be  agreed  upon  between  said  owners  and 
the  party  taking  such,  or  in  case  they  cannot  agree  at  such 
a  price  and  upon  such  terms  as  may  be  fixed  by  the  Corpora- 
tion Commission  after  notice  and  hearing ;  provided,  that  each 
owner  shall  be  required  to  deliver  his  gas  to  a  common  point 
of  delivery  on  or  adjacent  to  the  surface  overlying  such  gas. 
(S.  L.  1913,  p.  440,  Sec.  3.) 

§  49.  Penalty  for  Taking  More  Than  Share  of  Gas. — Any  per- 
son, firm  or  corporation,  taking  more  than  his  or  its  propor- 
tionate share  of  such  gas,  in  violation  of  the  provisions  of 
this  act,  shall  be  liable  to  any  adjoining  well  owner  for  all 
damages  sustained  thereby  and  subject  to  a  penalty  for  each 
violation  not  to  exceed  five  hundred  dollars  ($500.00),  and 
each  day  such  violation  is  continued  shall  be  a  separate  offense. 
(S.  L.  1913,  p.  441,  Sec.  4.) 

§  50.  Punishment  for  Violations  of  Act. — Any  person  or 
agent  of  a  corporation,  who  takes  gas,  or  aids  or  abets  in  the 
taking  of  gas,  except  as  herein  provided,  either  directly  or 
indirectly,  as  an  individual,  officer,  agent,  or  employee  of  any 
corporation,  shall  be  guilty  of  grand  larceny,  and,  upon  con- 
viction thereof,  shall  be  sentenced  to  the  penitentiary  not  to 
exceed  five  (5)  years. 

(S.  L.  1913,  p.  441,  Sec.  5.) 


1  See  Rule  32  of  Corporation  Commission  at  page  27. 


30  OKLAHOMA  OIL  AND  GAS  LAWS 

CORPORATION  COMMISSION  OF  OKLAHOMA. 
Cause  No.  2935.  IN  RE  Order  No.  1299. 

PROPOSED  ORDER  NO.  159  FOR  THE  PROMULGATION  OF  AD- 
DITIONAL AND  SUPPLEMENTAL  RULES  FOR  THE  CON- 
SERVATION OF  OIL  AND  NATURAL  GAS. 

ORDER. 

The  Corporation  Commission  having  held  hearing  and  investiga- 
tion pursuant  to  Proposed  Order  No.  159  and  the  Oil  and  Natural  Gas 
Conservation  Laws  of  the  State  and  in  accordance  with  the  provisions 
thereof,  having  made  its  finding  of  fact,  and  being  fully  advised  in 
the  premises,  it  is  therefore  considered,  ordered  and  adjudged  that 
the  following  rules,  regulations  and  requirements  be  and  are  hereby 
prescribed : 

RULE  1.  Waste  Prohibited.  Natural  gas  and  crude  oil  or  petroleum 
shall  not  be  produced  in  the  State  of  Oklahoma  in  such  manner  and 
under  such  conditions  as  to  constitute  waste.  (Sec.  1,  Ch.  197,  S.  L. 
1915;  Rule  1,  Order  No.  937.) 

RULE  2.  Waste  Defined.  The  term  "waste"  as  above  used  in  ad- 
dition to  its  ordinary  meaning,  shall  include  (a)  escape  of  natural 
gas  in  commercial  quantities  into  the  open  air;  (b)  the  intentional 
drowning  with  water  of  a  gas  stratum  capable  of  producing  gas  in 
commercial  quantities;  (c)  underground  waste;  (d)  the  permitting 
of  any  natural  gas  well  to  wastefully  burn;  and  (e)  the  wasteful 
utilization  of  such  gas.  (Sec.  2,  Ch.  197,  S.  L.  1915;  Rule  2,  Order 
No.  937.) 

RULE  3.  Gas  to  Be  Confined — Strata  to  Be  Protected.  Whenever 
natural  gas  in  commercial  quantities  or  a  gas  bearing  stratum  known 
to  contain  natural  gas  in  such  quantities  is  encountered  in  any  well 
drilled  for  oil  or  gas  in  this  State,  such  gas  shall  be  confined  to  its 
original  stratum  until  such  time  as  the  same  can  be  produced  and 
utilized  without  waste,  and  all  such  strata  shall  be  adequately  pro- 
tected from  infiltrating  waters.  (Sec.  3,  Ch.  197,  S.  L.  1915;  Rule  3, 
Order  No.  937.) 

RULE  4.  Commercial  Quantities  Defined.  Any  gas  stratum  showing 
a  well  defined  gas  sand  and  producing  gas  shall  be  considered  capable 
of  producing  gas  in  commercial  quantities  and  any  gas  coming  from 
such  a  stratum  or  sand  shall  be  considered  a  commercial  quantity, 
and  such  stratum  or  sand  shall  be  protected  the  same  as  if  it  pro- 
duced gas  in  excess  of  two  million  cubic  feet  per  day  of  twenty-four 
hours.  (Sec.  3,  Ch.  197,  S.  L.  1915;  Rule  4,  Order  No.  937.) 


OWNERSHIP  OF  GAS  DEFINED  AND  OUTPUT  RESTRICTED    31 

RULE  5.  Gas  to  Be  Taken  Ratably.  Whenever  the  full  production 
from  any  common  source  of  supply  of  natural  gas  In  this  State  Is  In 
excess  of  the  market  demands,  then  any  person,  firm  or  corporation 
having  the  right  to  drill  into  and  produce  gas  from  any  such  common 
source  of  supply,  may  take  therefrom  only  such  proportion  of  the 
natural  gas  that  may  be  marketed  without  waste,  as  the  natural  flow 
of  the  well  or  wells  owned  or  controlled  by  any  such  person,  firm  or 
corporation  bears  to  the  total  natural  flow  of  such  common  source  of 
supply  having  due  regard  to  the  acreage  drained  by  each  well,  so  as 
to  prevent  any  such  person,  firm  or  corporation  securing  any  unfair 
proportion  of  the  gas  therefrom;  provided,  that  the  Corporation  Com- 
mission may  by  proper  order,  permit  the  taking  of  a  greater  amount 
whenever  it  shall  deem  such  taking  reasonable  or  equitable.  (Sec. 
4,  Ch.  197,  S.  L.  1915;  Rule  No.  5,  Order  No.  937.) 

RULE  6.  Common  Purchaser  Rule.  Every  person,  firm  or  corpora- 
tion, now  or  hereafter  engaged  in  the  business  of  purchasing  and 
selling  natural  gas  in  this  State,  shall  be  a  common  purchaser  thereof, 
and  shall  purchase  all  of  the  natural  gas  which  may  be  offered  for 
sale,  and  which  may  reasonably  be  reached  by  its  trunk  lines,  or 
gathering  lines,  without  discrimination  in  favor  of  one  producer  as 
against  another,  or  in  favor  of  any  one  source  of  supply  as  against 
another  save  as  authorized  by  the  Corporation  Commission  after  due 
notice  and  hearing,  but  if  any  such  person,  firm  or  corporation  shall  be 
unable  to  purchase  all  the  gas  so  offered,  then  it  shall  purchase  nat- 
ural gas  from  each  producer  ratably.  (Sec.  5,  Ch.  197,  S.  L.  1915; 
Rule  6,  Order  No.  937.) 

RULE  7.  Common  Purchaser — Discrimination  Prevented.  No  com- 
mon purchaser  shall  discriminate  between  like  grades  and  pressures 
of  natural  gas,  or  in  favor  of  its  own  production  or  of  production  in 
which  it  may  be  directly  or  indirectly  interested,  either  in  whole  or 
in  part,  but  for  the  purpose  of  pro-rating  the  natural  gas  to  be 
marketed,  such  production  shall  be  treated  in  like  manner  as  that  of 
any  other  producer  or  person,  and  shall  be  taken  only  in  the  ratable 
proportion  such  production  bears  to  the  total  production  available  for 
marketing.  (Sec.  5,  Ch.  197,  S.  L.  1915;  Rule  7,  Order  No.  937.) 

RULE  8.  Gas  to  be  Metered.  All  gas  produced  from  the  deposits 
of  this  State  when  sold  shall  be  measured  by  meter  and  the  Corporation 
Commission  shall,  upon  notice  and  hearing,  relieve  any  common  pur- 
chaser from  purchasing  gas  of  an  inferior  quality  or  grade,  and  the 
Commission  shall  from  time  to  time  make  such  regulations  for 
delivery,  metering  and  equitable  purchasing  and  taking  as  conditions 
may  necessitate.  (Sec.  5,  Ch.  197,  S.  L.  1915;  Rule  8,  Order  No.  937.) 


82  OKLAHOMA  OIL  AND  GAS  LAWS 

RULE  9.  Commission  Shall  Regulate  the  Taking  of  Natural  Go*. 
The  Corporation  Commission  shall  as  occasion  arises  prescribe  rules 
and  regulations  for  the  determination  of  the  natural  flow  of  any  well 
or  wells  in  this  State,  and  shall  regulate  the  taking  of  natural  gas 
from  any  and  all  common  sources  of  supply  within  the  State  so  as  to 
prevent  waste,  protect  the  interests  of  the  public  and  of  all  those 
having  a  right  to  produce  therefrom,  and  shall  prevent  unreasonable 
discrimination  in  favor  of  any  one  common  source  of  supply  as  against 
another.  (Sec.  4,  Ch.  197,  S.  L.  1915;  Rule  9,  Order  No.  937.) 

RULE  10.  Eminent  Domain — Acceptance  of  Law  to  te  Filed  With 
Commission.  Before  any  person,  firm  or  corporation  shall  have 
possess,  enjoy  or  exercise  the  right  of  eminent  domain,  right-of-way, 
right  to  locate,  maintain,  construct  or  operate  pipe  lines,  fixtures,  or 
equipment  belonging  thereto  or  used  in  connection  therewith,  for  the 
carrying  or  transportation  of  natural  gas,  whether  for  hire  or  other- 
wise, or  shall  have  the  right  to  engage  in  the  business  of  purchasing, 
piping,  or  transporting  natural  gas,  as  a  public  service  corporation, 
or  otherwise,  such  person,  firm  or  corporation  shall  file  in  the  office  of 
the  Corporation  Commission  a  proper  and  explicit  authorized  accept- 
ance of  the  provisions  of  the  law.  (Sec.  9,  Ch.  197,  S.  L.  1915;  Rule 
10,  Order  No.  937.) 

RULE  11.  Duties  of  Conservation  Officers  in  Reference  to  Rule  10. 
All  conservation  agents  of  the  Corporation  Commission  are  directed 
to  inquire  into  the  matter  of  the  performance  of  and  compliance  with 
the  foregoing  rule  (No.  10),  and  to  prevent  the  transportation  of  gas 
by  any  person,  firm  or  corporation,  found  not  to  have  complied  with 
said  rule.  (Sec.  8,  Ch.  197,  S.  L.  1915;  Rule  11,  Order  No.  937.) 

RULE  12.  Approved  Methods  of  Preventing  Waste  to  oe  Used.  All 
operators,  contractors,  or  drillers,  pipe  line  companies,  gas  distributing 
companies  or  individuals,  drilling  for  or  producing  crude  oil  or 
natural  gas,  or  piping  oil  or  gas  for  any  purpose,  shall  use  every 
possible  precaution  in  accordance  with  the  most  approved  methods, 
to  stop  and  prevent  waste  of  oil  and  gas,  or  both,  in  drilling  and  pro- 
ducing operations,  storage,  or  in  piping  or  distributing,  and  shall 
not  wastefully  utilize  oil  or  gas,  or  allow  same  to  leak  or  escape 
from  natural  reservoirs,  wells,  tanks,  containers,  or  pipes.  (See  also 
Rule  28  infra.) 

RULE  13.  Notice  of  Intention  to  Drill,  Deepen  or  Plug.  Notice 
shall  be  given  to  the  Corporation  Commission  of  the  intention  to 
drill,  deepen  or  plug  any  well  or  wells  and  of  the  exact  location  of 
each  and  every  such  well.  In  case  of  drilling,  notice  should  be  given 
at  least  five  days  prior  to  the  commencement  of  drilling  operations. 


OWNERSHIP  OP  GAS  DEFINED  AND  OUTPUT  RESTRICTED    33 

Notice  of  intention  to  plug  must  be  accompanied  by  a  complete  log 
of  the  well,  on  forms  prescribed  by  the  Corporation  Commission. 

Blanks  for  notification  and  reports  can  be  obtained  on  application 
to  the  Corporation  Commission  or  its  conservation  agents. 

RULE  14.    Plugging  Dry  and  Abandoned  Wells. 

(a)  Must  Be  Plugged  Under  Supervision  of  Conservation  Agent. 

All  abandoned  or  dry  wells  shall  immediately  be  plugged  under  the 
supervision  of  an  oil  and  gas  conservation  agent  of  the  Corporation 
Commission. 

(b)  Manner  of  Plugging. 

All  dry  or  abandoned  wells  must  be  plugged  by  confining  all  oil, 
gas  or  water  in  the  strata  in  which  they  occur  by  the  use  of  mud- 
laden  fluid,  and  in  addition  to  mud-laden  fluid,  cement  and  plugs 
may  be  used. 

These  wells  must  first  be  thoroughly  cleaned  out  to  the  bottom  of 
the  hole,  and  before  the  casing  is  removed  from  the  hole,  the  hole 
must  be  filled  from  the  bottom  to  the  top  with  mud-laden  fluid  of 
maximum  density  and  which  shall  weigh  at  least  25  per  cent  more 
than  an  equal  volume  of  water;  unless  the  Commission  directs  that 
some  other  method  shall  be  used. 

(c)  Notice  of  Intention  of  Plug. 

Before  plugging  dry  and  abandoned  wells,  notice  shall  be  given  to 
the  Corporation  Commission  or  its  conservation  agent  in  the  field  and 
to  all  available  adjoining  lease  and  property  owners,  and  representa- 
tives of  such  lease  and  property  owners  may,  in  addition  to  the  oil 
and  gas  conservation  agent  of  the  Commission,  be  present  to  witness 
the  plugging  of  these  wells  if  they  so  desire,  but  plugging  shall  not 
be  delayed  because  of  failure  or  inability  to  deliver  notices  to  adjoining 
lease  and  property  owners. 

RULE  15.  Log  and  Plugging  Record  to  be  Filed  With  Commission. 
The  owner  or  operator  shall,  upon  the  completion  of  any  well,  file 
with  the  Corporation  Commission  a  complete  record  or  log  of  the 
same,  duly  signed  and  sworn  to,  upon  blanks  to  be  furnished  by  the 
Commission  upon  application;  and  upon  plugging  any  well  for  any 
cause  whatsoever,  a  complete  record  of  the  plugging  thereof  shall 
be  made  out  and  duly  verified  on  blanks  to  be  furnished  by  the  Com- 
mission. (Rule  25,  Order  No.  937.) 

RULE  16.  Proper  Anchorage  to  be  Laid.  Before  any  well  is  begun 
in  any  field  where  it  is  not  known  that  high  pressure  does  not  exist, 


34  OKLAHOMA  OIL  AND  GAS  LAWS 

proper  anchorage  shall  te  laid,  so  that  the  control  casing-head  may  be 
used  on  the  inner  string  of  casing  at  all  times,  and  this  type  of 
casing-head  shall  be  kept  in  constant  use,  unless  it  is  known  from 
previous  experience  and  operations  on  wells  adjacent  to  the  one  being 
drilled  that  high  pressure  dees  not  exist  or  will  not  be  encountered 
therein.  (Rule  15,  Order  No.  937.) 

RULE  17.  Equipment  for  Conserving  Natural  Gas  Shan  be  Pro- 
vided Before  "Drilling  In."  In  all  proven  or  well  denned  gas  fields, 
or  where  it  can  reasonably  be  expected  that  gas  in  commercial  quan- 
tities will  be  encountered,  adequate  preparation  shall  be  made  for  the 
conservation  of  gas  before  "drilling  in"  any  well;  and  the  gas  sands 
shall  not  be  penetrated  until  equipment  (including  mud  pumps,  lubri- 
cators, etc.),  for  "mudding  in"  all  gas  strata,  or  sands,  shall  have 
been  provided. 

RULE  18.  Separate  Slush  Pit  to  l>e  Provided.  Before  commencing 
to  drill  a  well,  a  separate  slush  pit  or  sump  hole  shall  be  constructed 
by  the  owner,  operator  or  contractor  for  the  reception  of  all  pump- 
ings  from  clay  or  soft  shale  formations  in  order  to  have  the  same  on 
hand  for  the  making  of  mud-laden  fluid.  (Rule  14,  Order  No.  937.) 

NOTE.  In  order  to  avoid  freezing  casing,  operators  are  cautioned 
not  to  allow  sand  or  lime  to  be  mixed  with  clay  or  soft  shale 
pumpings. 

RULE  19.  Wells  Not  to  be  Permitted  to  Produce  Oil  and  Gas  From 
Different  Strata.  No  well  shall  be  permitted  to  produce  both  oil  and 
gas  from  different  strata  unless  it  be  in  such  manner  as  to  prevent 
waste  of  any  character  to  either  product.  Therefore,  if  a  strata 
should  be  encountered  bearing  gas  and  the  owner,  operator,  or  con- 
tractor should  go  deeper  in  search  for  other  gas  or  oil  bearing  sands, 
the  stratum  first  penetrated  and  likewise  each  and  every  sand  in  turn, 
shall  be  closed  separately,  and  if  it  is  not  wanted  for  immediate  use, 
it  shall  be  securely  shut  in  so  as  to  prevent  waste,  either  open  or 
underground.  (Rule  16,  Order  No.  937.) 

RULE  20.  Strata  to  be  Scaled  Off.  No  well  shall  be  drilled  through 
or  below  any  oil,  gas  or  water  stratum  without  sealing  off  such, 
stratum  or  the  contents  thereof,  after  passing  through  the  sand,  either 
by  the  mud-laden  fluid  process  or  by  casing  and  packers,  regardless  of 
volume  or  thickness  of  sand.  (Rule  17,  Order  No.  937.) 

RULE  21.  Mud-laden  Fluid  to  be  Applied.  No  gas  sand  or  stratum 
upon  being  penetrated  shall  be  drilled  or  left  open  more  than  three  days 
without  the  application  of  mud-laden  fluid  to  prevent  the  escape  of 
gas  while  further  drilling  in  or  through  such  sand  stratum.  (Sec. 
3,  Ch.  197,  S.  L.  1915;  Rule  18,  Order  No.  937.) 


OWNERSHIP  OP  GAS  DEFINED  AND  OUTPUT  RESTRICTED    35 

RULE  22.  Density  of  Mud  Fluid  Where  Well  Containing  Water  i3 
Drilled  Into  Oil  or  Gas  Producing  Strata.  No  operator  shall  drill  a 
well  into  an  oil  or  gas  producing  sand  with  water  from  a  higher 
formation  in  the  hole,  or  with  a  sufficient  head  of  water  introduced 
into  the  hole  to  prevent  gas  blowing  to  the  surface.  The  well  shall 
either  be  allowed  to  blow  until  the  sand  has  been  drilled  in  or  it  shall 
be  drilled  in  under  a  head  of  fluid  consisting  of  not  less  than  25  per 
cent  mud;  but  in  no  case  shall  gas  be  allowed  to  blow  for  a  longer 
period  than  three  days.  Mud  fluid  used  for  protecting  oil  and  gas 
bearing  sands  in  upper  formations  while  oil  or  gas  is  being  pro- 
duced from  deeper  formations  shall  have  a  density  of  not  less  than 
25  per  cent  mud  and  should  contain  not  less  than  28  per  cent  mud. 

RULE  23.  Mud-laden  Fluid  to  Be  Applied  in  Pulling  or  Redeeming 
Casing.  No  outside  casing  from  any  oil  or  gas  well  in  an  unex- 
hausted oil  or  gas  field  shall  be  pulled  without  first  flooding  the  well 
with  mud-laden  fluid  behind  the  inside  string  of  casing,  after  unseating 
the  casing,  and  as  casing  is  withdrawn,  well  shall  be  kept  full  to  top 
with  said  mud-laden  fluid  and  same  shall  be  left  in  the  hole;  and 
said  mud-laden  fluid  shall  be  so  applied  as  to  effectively  seal  off  all 
fresh  or  salt  water  strata,  and  all  oil  or  gas  strata  not  being  utilized 
(Rule  23,  Order  No.  937.) 

RULE  24.  Mud-laden  Fluid — When  to  Be  Applied  to  Completed 
Wells.  When  necessary  (or  in  any  event  when  ordered  by  the  Cor- 
poration Commission)  to  seal  off  any  oil,  gas  or  water  sand,  casing 
shall  be  seated  in  mud-laden  fluid;  and  concerning  wells  already 
drilled,  the  operator  shall,  upon  the  order  of  the  Corporation  Com- 
mission, raise  any  string  or  strings  of  casing  and  re-set  them  in 
mud-laden  fluid  when  it  is  thought  advisable  to  do  so  in  order  to 
avoid  existing  underground  waste,  pollution  or  infiltration.  (Rule 
22,  Order  No.  937.) 

RULE  25.  Fresh  Water  to  Be  Protected.  Fresh  water,  whether 
above  or  below  the  surface,  shall  be  protected  from  pollution,  whether 
in  drilling  or  plugging.  (Rule  14,  Order  No.  937.) 

RULE  26.  Gas  to  Be  Separated  From  Oil.  No  gas  found  in  the 
upper  part  of  a  level  or  sand  which  can  be  separated  from  the  oil  in 
the  lower  part  of  the  same  sand  or  in  a  lower  or  different  sand  shall  be 
allowed  or  used  to  flow  oil  to  the  surface  and  all  gas,  so  far  as  it  is 
possible  to  do  so,  shall  be  separated  from  the  oil  and  securely  protected. 
(Rule  19,  Order  No.  937.) 

RULE  27.  Separating  Device  to  Be  Installed  Upon  Order  of  Com- 
mission. Where  oil  and  gas  are  found  in  the  same  stratum  and  it  la 
impossible  to  separate  the  one  from  the  other,  the  operator  shall. 


36  OKLAHOMA  OIL  AND  GAS  LAWS 

upon  being  so  ordered  by  the  Corporation  Commission,  install  a  sep- 
arating device  of  approved  type,  which  shall  be  kept  in  place  and 
used  as  long  as  necessity  therefor  exists,  and  after  being  installed, 
such  device  shall  not  be  removed  nor  the  use  thereof  discontinued 
without  the  consent  of  the  Corporation  Commission.  (Rule  20,  Order 
No.  937.) 

RULE  28.  Gas  Wells  Not  to  Produce  From  Different  Sands  at  the  Same 
Time  Through  the  Same  String  of  Casing.  No  gas  well  shall  be  per- 
mitted to  produce  gas  from  different  levels,  sands  or  strata  at  the  same 
time  through  the  same  string  of  casing  (Sec.  3,  Ch.  197,  S.  L.  1915), 
and  when  gas  upon  being  found  is  not  needed  for  immediate  use,  the 
same  shall  be  confined  in  its  original  stratum  until  such  time  as  the 
same  can  be  produced  and  utilized  without  waste,  (Sec.  3,  Ch.  197, 
S.  L.  1915),  and  in  confining  gas  to  its  original  place,  the  mud-laden 
fluid  process  shall  be  used  unless  the  character  of  the  formation 
involved  is  sufficiently  ascertained  and  understood  to  know  that  the 
casing  and  packer  method  with  Bradenhead  attachment  can  be  safely 
applied  and  competently  used,  and  in  the  use  of  casing,  packing 
and  Bradenhead  method,  separate  strings  of  casing  shall  be  run 
to  each  sand  and  the  application  of  the  latter  method  in  preference 
to  the  former  shall  not  be  made  without  notice  to  and  consent  of  the 
Corporation  Commission.  (Rule  21,  Order  No.  937.) 

RULE  29.  Vacuum  Pumps  Not  to  Be  Installed  Except  Upon  Appli- 
cation to  This  Commission.  The  future  installation  of  vacuum  pumps 
or  other  devices  for  the  purpose  of  putting  a  vacuum  on  any  gas  or  oil 
bearing  stratum  is  prohibited,  provided  that  any  operator  desiring  to 
install  such  apparatus  may,  upon  notice  to  adjacent  lease  owners 
or  operators,  apply  to  the  Commission  for  permission;  and  in  the 
matter  of  vacuum  pumps  heretofore  installed,  the  use  of  same  is 
authorized  unless  specifically  discontinued  by  order  of  the  Com- 
mission upon  notice  and  hearing.  (Rule  22,  Order  No.  937.) 

RULE  30.    Shooting  of  Wells. 

(a)  Wells  Not  to  Be  Shot  Into  Salt  Water. 

No  wells  shall  be  so  shot  as  to  let  in  salt  water  or  other  foreign 
substance  injurious  to  the  oil  or  gas  sand. 

(b)  Reports  to  Be  Made  to  the  Corporation  Commission. 

Reports  shall  be  made  to  the  Corporation  Commission  on  all  wells 
shot,  showing  the  condition  of  the  well  before  and  after  shooting, 
including  the  size  of  the  shot,  sand  or  sands  shot,  production  before 
and  after  shooting,  per  cent  of  water  in  well  before  and  after  shooting. 

(c)  Damaged  Wells  to  Be  Abandoned. 


OWNERSHIP  OF  GAS  DEFINED  AND  OUTPUT  RESTRICTED    37 

In  case  irreparable  injury  is  done  to  the  well,  or  to  the  oil  or 
gas  sand  or  sands  by  shooting,  the  well  shall  immediately  be  abandoned 
and  plugged  as  provided  by  Rule  No.  14  herein. 

RULE  31.  Gauge  to  Be  Taken — Reports  to  Commission.  All  oil  and 
gas  operators  shall  between  the  first  and  tenth  of  each  calendar  month 
take  a  gauge  of  the  volume  and  rock  pressure  of  all  wells  producing 
natural  gas,  and  shall  forthwith  report  to  the  Corporation  Commission 
on  gauge  blanks  furnished  by  the  Commission.  (Rule  26,  Order  No. 
937.) 

RULE  32.  Production  to  Be  Restrained  to  25  Per  Cent  of  Potential 
Capacity.  When  the  gas  from  any  well  is  being  used,  the  flow  or  pro- 
duction thereof  shall  be  restrained  to  25  per  cent  of  the  potential 
capacity  of  the  same;  that  is  to  say  in  any  day  (24  hours)  the  well 
shall  not  be  permitted  to  flow  or  produce  more  than  one-fourth  of  the 
potential  capacity  thereof,  as  shown  by  the  last  monthly  gauge. 
(Rule  29,  Order  No.  937.) 

RULE  33.  Notification  of  Fires  and  Breaks  or  Leaks  in  Lines.  All 
drillers,  operators,  pipe  line  companies,  and  individuals  operating  oil 
and  gas  wells  or  pipe  lines  shall  immediately  notify  the  Commission 
by  telegraph  or  telephone  and  by  letter  of  all  fires  which  occur 
at  oil  and  gas  wells  or  oil  tanks  owned,  operated  or  controlled  by 
them,  or  on  their  property,  and  shall  immediately  report  all  tanks 
struck  by  lightning  and  any  other  fires  which  destroy  crude  oil 
or  natural  gas,  and  shall  immediately  report  in  the  manner  heretofore 
described  any  breaks  or  leaks  in  tanks  or  pipe  lines  from  which  oil 
or  gas  is  escaping.  In  all  reports  of  fires,  breaks,  or  leaks  in 
pipes,  or  other  accidents  of  this  nature,  the  location  of  the  well,  tank, 
or  line  break  shall  be  given,  showing  location  by  quarter,  section, 
township,  and  range. 

RULE  34.  Reports  From  Pipe  Line  Companies.  The  Commission 
will  from  time  to  time  require  oil  and  gas  pipe  line  companies  to  make 
reports  to  the  Corporation  Commission  showing  wells  connected  with 
their  lines  during  any  month,  names  of  parties  from  whom  oil 
and  gas  are  purchased,  the  amount  of  production  taken  therefrom, 
the  amount  of  oil  or  gas  purchased  therefrom;  and  all  oil  and  gas 
pipe  line  companies  shall,  in  addition  to  the  other  reports  required 
by  the  rules  of  the  Corporation  Commission,  furnish  to  the  Com- 
mission duplicates  of  all  reports  made  to  the  State  Auditor  under  the 
oil  and  gas  gross  production  tax  laws.  The  Commission  will,  in  case 
of  over-production  or  for  any  other  reason  which  it  deems  urgent, 
require  oil  or  gas  pipe  line  companies  to  furnish  daily  reports  of 


38  OKLAHOMA  OIL,  AND  GAS  LAWS 

the  amount  of  oil  or  gas  purchased  or  taken  from  different  wella  or 
parties. 

RULE  35.  Prescribing  Conditions  Under  Which  Pipe  Line  Companies 
May  Connect  With  Oil  or  Gas  Wells.  Pipe  line  companies  shall  not 
connect  with  oil  or  gas  wells  until  the  owners  or  operators  thereof 
shall  furnish  a  certificate  from  the  Corporation  Commission  that  the 
conservation  laws  of  the  State  have  been  complied  with;  provided, 
this  rule  shall  not  prevent  the  temporary  connection  with  any  well  or 
wells  In  order  to  take  care  of  production  and  prevent  waste  until 
opportunity  shall  have  been  given  the  owner  or  operator  of  said  well 
to  secure  certificate  showing  compliance  with  the  conservation  laws 
of  the  State. 

RULE  3G.  Conservation  Laws  and  Rules  of  the  Corporation  Com- 
mission to  Be  Complied  With  Before  Connecting  Wells  With  Pipe  Lines. 
Owners  or  operators  of  oil  or  gas  wells  shall,  before  connecting  with 
any  oil  or  gas  pipe  line,  secure  from  the  Corporation  Commission  a 
certificate  showing  compliance  with  the  oil  and  gas  conservation  laws 
of  the  State  and  conservation  orders  of  the  Corporation  Commission; 
provided  that  this  rule  shall  not  prevent  temporary  connection  with 
pipe  lines  in  order  to  take  care  of  production  until  opportunity  shall 
have  been  given  for  securing  such  certificate;  provided,  further,  that 
the  owners  or  operators  of  such  wells  shall  in  a  known  or  proven 
field  make  application  for  such  certificate  in  anticipation  of 
production. 

RULE  37.  Drilling  Records  to  Be  Kept  at  Wells.  All  operators, 
contractors,  or  drillers  shall  keep  at  each  well  accurate  records  of  the 
drilling,  re-drilling,  or  deepening  of  all  wells,  showing  all  formations 
drilled  through,  casing  used,  and  other  information  in  connection 
with  drilling  operation  of  the  property,  and  any  and  all  of  this  informa- 
tion shall  be  furnished  to  the  Commission  upon  request,  or  to  any 
conservation  agent  of  the  Commission. 

RULE  38.  Conservation  Agents  to  Have  Access  to  All  Wells  and 
All  Well  Records.  Conservation  agents  of  the  Commission  shall  have 
access  to  all  wells  and  to  all  well  records,  and  all  companies,  con- 
tractors, or  drilers  shall  permit  any  conservation  agent  of  the  Cor- 
poration Commission  to  come  upon  any  lease  or  property  operated  or 
controlled  by  them,  and  to  inspect  any  and  all  wells  and  the  records  of 
said  well  or  wells,  and  to  have  access  at  all  times  to  any  and  all 
wells,  and  any  and  all  records  of  said  wells. 

Provided,  that  information  so  obtained  by  conservation  agents 
shall  be  considered  official  information  and  shall  be  reported  only  to 
the  Corporation  Commission. 


OWNERSHIP  OP  GAS  DEFINED  AND  OUTPUT  RESTRICTED    39 

RULE  39.  Notice  to  Contractors,  Drillers,  and  Others  to  Observe 
Rules.  All  contractors  and  drillers  carrying  on  business  or  doing 
work  In  the  oil  or  gas  fields  of  the  State,  as  well  as  lease-holders,  land 
owners,  and  operators  generally,  shall  take  notice  of  and  are  hereby 
directed  to  observe  and  apply  the  foregoing  rules  and  regulations; 
and  all  contractors,  drillers,  land  owners,  and  operators  will  be  held 
responsible  for  infraction  of  said  rules  and  regulations. 

RULE  40.  Conservation  Agents  to  Co-operate  With  Oil  and  Oat 
Inspectors  of  the  Department  of  the  Interior.  All  conservation  agents 
appointed  by  the  Corporation  Commission  shall  co-operate  with  and 
invite  the  co-operation  of  the  oil  and  gas  inspectors  of  the  United 
States  Bureau  of  Mines  of  the  Department  of  the  Interior. 

RULE  41.  Conservation  Agents  to  Assist  in  Enforcement  of  Rules. 
All  ccnservation  agents  of  the  Commission  shall  assist  in  the  enforce- 
ment of  these  rules  and  shall  Immediately  notify  the  Commission  upon 
observance  of  any  Infraction  thereof. 

ADDITIONAL  RULES  WILL  BE  PRESCRIBED  FROM 
TIME  TO  TIME. 

The  Commission  will  from  time  to  time  prescribe  additional  rules, 
regulations,  and  requirements  for  the  conservation  of  crude  oil,  or 
petroleum,  and  natural  gas. 

This  Order  shall  be  in  full  force  and  effect  from  and  after  August  20, 
1917. 

IN  WITNESS  WHEREOF,  we  have  hereunto  set  our  hands  and  caused 
to  be  affixed  the  seal  of  the  said  Commission,  this  the  ICth  day  of  July, 
1917. 

Corporation  Commission, 

J.  E.  LOVE,  Chairman. 
W.  D.  HUMPHREY,  Commissioner. 
CAMPBELL   RUSSELL,   Commissioner. 
(Attest) :  J.  H.  HYDE,  Secretary. 

AMENDMENTS  TO  COMMISSIONER'S  ORDER 

No.  1299. 

Adopted  January  5,  1922,  in  Order  No.  1986. 
(1).    Amendment  to  Rule  No.  11  of  said  Order  No.  1299. 

"The  owners  of  any  oil  and  gas  mining  lease  in  this  State  upon 
which  drilling  operations  are  or  may  hereafter  be  carried  on  shall 
poet  a  substantial  sign  in  a  conspicuous  place  upon  each  well  or 


40  OKLAHOMA  OIL  AND  GAS  LAWS 

derrick,  giving  the  name  of  the  farm,  the  section,  township  and  range, 
the  name  of  the  lease  owner  and  number  of  the  well." 

(2).    Amendment  to  Rule  No.  13  of  said  Order  No.  1299: 

"The  Commission  may  at  any  time  upon  its  own  motion  or  upon 
complaint  received  from  any  person  interested  in  the  property  to  be 
drilled  or  in  adjacent  property  require  from  the  owner  of  the  lease 
or  the  person,  firm,  corporation  or  association  drilling  the  well  a  bond 
in  a  sum  not  to  exceed  $2500.00  running  to  the  State  of  Oklahoma 
conditioned  that  said  well  upon  abandonment  shall  be  plugged  in 
accordance  with  the  rules  and  regulations  of  the  Commission.  Said 
bond  to  remain  in  force  and  effect  until  the  plugging  is  approved  by 
the  Conservation  Officer  not  exceeding  two  years  from  date  of  bond; 
provided  that  any  person,  firm,  company  or  corporation  may  file  with 
the  Commission  a  blanket  bond  in  a  sum  not  to  exceed  $10,000.00  with 
or  without  surety  as  may  be  required  by  the  Commission  and  to  be 
approved  by  the  Commission  covering  all  wells  drilling  or  to  be 
drilled  by  the  principal  in  said  bond  and  said  bond  shall  be  considered 
in  full  compliance  with  this  order  until  such  times  as  the  penalty  of 
said  bond  shall  be  collected  for  violation  of  the  terms  thereof." 

BOND  FOR  PLUGGING  OIL  OR  GAS  WELL. 

KNOW  ALL  MEN  BY  THESE  PRESENTS  that  we, 

of  

Oklahoma,  as  principals,  and 

and 

of    

as  suret are  held  hereby  and  firmly  bound  unto  the 

State  of  Oklahoma  in  the  penal  sum  of  $ 

lawful  money  of  the  United  States,  for  the  faithful  pay- 
ment of  which  we  hereby  bind  ourselves,  our  heirs,  executors,  admin- 
istrators and  assigns. 

The  condition  of  this  obligation  is  that  whereas  the  above  bounden 
principals  have  commenced  the  drilling  of  a  test  well  for  oil  or  gas 
on  the  following  described  land:  Well  No Description 

Section Township  

Range  County,  Oklahoma 


Now  THEREFORE,  if  the  above  bounden  principals  shall  comply  with 
all  of  the  provisions  of  the  laws  of  the  State  of  Oklahoma  and  the 
rules,  regulations  and  requirements  of  the  Corporation  Commission  of 


OWNERSHIP  OP  GAS  DEFINED  AND  OUTPUT  RESTRICTED    41 

the  State  of  Oklahoma  with  reference  to  properly  plugging  said  well 
upon  abandonment,  or  upon  determination  that  the  same  is  dry,  then 
this  obligation  is  void;  otherwise  the  same  shall  be  and  remain  in 
full  force  and  effect. 

IN  TESTIMONY  WHEREOF,  Witness   our    hands    this day   of 

.,  192.. 


Principals. 

IN  TESTIMONY  WHEREOF,  Witness  our  hands  this day  of 

192 


Suret . 
Dated  this. .  . .  .day  of ,  192 


CHAPTER  X. 

GAS  PIPE  LINES. 

$  51.  Businesses  subject  to  the  act. 

52.  Pipe  line  right-of-way. 

53.  Pipe  line  operators  common  purchasers. 

54.  Pipe  line  operators  to  be  common  carriers. 

55.  Non-compliance  with  act  made  unlawful. 

56.  Prerequisites  to  carrying  gas. 

57.  The  right  to  use  highways. 

58.  Filing  records  with  Corporation  Commission. 

59.  Amount  of  gas  to  be  taken. 

60.  Meter  requirements. 

61.  Penalty  for  violation  of  act. 

62.  Receivership  authorized. 

63.  Reports  of  gas  companies  as  evidence. 

64.  Enforcement  by  Corporation  Commission. 

§  51.  Bur iness  Subject  to  the  Act. — Every  corporation,  joint 
stock  company,  limited  copartnership,  partnership  or  other 
person,  now,  or  hereafter  exercising  or  claiming  the  right  to 
carry  or  transport  natural  gas  by  or  through  pipe  line  or  lines, 
for  hire,  compensation  or  otherwise,  or  now  or  hereafter  exer- 
cising or  claiming  the  right  to  engage  in  the  business  of  pro- 
ducing, piping  or  transporting  natural  gas,  or  any  other  per- 
son or  persons,  now  or  hereafter  engaging  in  the  business  of 
buying,  selling  in  or  transporting  natural  gas  within  the  limits 
of  this  State,  shall  not  have  or  possess  the  right  to  conduct  or 
engage  in  said  business  or  operations,  in  whole  or  in  part,  as 
above  described,  or  have  or  possess  the  right  to  locate,  main- 
tain, or  operate  the  necessary  pipe  lines,  fixtures  and  equip- 
ment thereto  belonging,  or  use  in  connection  therewith,  con- 
cerning the  said  business  of  carrying  or  transporting  natural 
gas  as  aforesaid,  on,  over,  along,  across,  through,  in  or  under 
any  present  or  future  highway,  or  part  thereof,  within  the 
State,  or  to  have  or  possess  the  right  of  eminent  domain,  or 
any  other  right  or  rights,  concerning  said  business  or  opera- 

42 


GAS  PIPE  LINES  43 

tion,  in  whole  or  in  part,  except  as  authorized  by  and  subject 
to  the  provisions  of  this  act,  except,  further,  and  only  such 
right  or  rights  as  may  already  exist  which  are  valid,  vested, 
and  incapable  of  revocation  by  any  law  of  this  state  or  of  the 
United  States.1 

(S.  L.  1913,  p.  166,  Sec.  1.)    Act  Cited:  Okla.  Natural  Gas  Co. 
v.  State,  47  Okla.  601,  150  Pac.  475. 

§  52.  Pipe  Line  Right-of-Way. — For  the  purpose  of  acquiring 
necessary  right-of-way,  every  such  person  is  hereby  granted 
the  right  of  condemnation  by  eminent  domain,  and  in  the  use 
of  the  highways  in  this  State,  for  the  purpose  of  transporting 
natural  gas  by  pipe  lines,  and  the  location,  laying,  construct- 
ing, maintaining  and  operations  thereof. 
(S.  L.  1913,  p.  167,  Sec.  2.) 

§  53.  Pipe  Line  Operators  Common  Purchasers. — Every  cor- 
poration, joint  stock  company,  limited  copartnership,  partner- 
ship or  other  person,  now  or  hereafter  claiming  or  exercising 
the  right  to  carry  or  transport  natural  gas  by  pipe  line  or  pipe 
lines,  for  hire,  compensation,  or  otherwise,  within  the  limits 
of  this  State,  is  allowed  by,  and  upon  compliance  with  the 
requirements  of  this  act,  as  owner,  lessee,  licensee,  or  by  virtue 
of  any  other  right  or  claim,  which  is  now  engaged  or  hereafter 
shall  engage  in  the  business  of  purchasing  natural  gas  shall  be 
a  common  purchaser  thereof,  and  shall  purchase  all  the  natural 
gas  in  the  vicinity  of,  or  which  may  be  reasonably  reached  by 
its  pipe  lines,  or  gathering  branches,  without  discrimination 
in  favor  of  one  producer  or  one  person  as  against  another,  and 
shall  fully  perform  all  the  duties  of  a  common  purchaser;  but 
if  it  shall  be  unable  to  perform  the  same,  or  be  legally  excused 
from  purchasing  and  transporting  all  the  natural  gas  produced 
or  offered,  then  it  shall  purchase  and  transport  natural  gas 
from  each  person  or  producer  ratably,  in  proportion  to  the 
average  production,  and  such  common  purchasers  are  hereby 
expressly  prohibited  from  discriminating  in  price  or  amount 


1  Sections  4290  to  4303,  Inclusive,  Rev.  Laws  1910,  are  in  conflict  with 
the  general  provisions  of  this  chapter,  and  are  seemingly  repealed. 


44  OKLAHOMA  OIL  AND  GAS  LAWS 

for  like  grades  of  natural  gas  or  facilities  as  between  producers 
or  persons,-  and  in  the  event  it  is  likewise  a  producer,  it  is 
hereby  prohibited  from  discrimination  in  favor  of  its  own  pro- 
duction, or  production  in  which  it  may  be  interested  directly 
or  indirectly  in  whole  or  in  part,  and  its  own  production  shall 
be  treated  as  that  of  any  other  person  or  producer.  All  per- 
sons, firms,  associations,  and  corporations  are  exempted  from 
the  provisions  of  this  act,  except  from  the  provisions  of  section 
(9)  nine  thereof,  where  the  nature  and  extent  of  their  busi- 
ness is  such  that  the  public  needs  no  use  in  the  same,  and  the 
conduct  of  the  same  is  not  a  matter  of  public  consequence,  and 
for  this  purpose  the  district  courts  of  this  State  and  the  Corpo- 
ration Commission  are  hereby  vested  with  jurisdiction  to  de- 
termine such  exemptions  in  any  action  or  proceeding  properly 
before  them,  and  provided  by  the  laws  now  in  force  in  this 
State  regulating  the  purchase  and  transportation  of  oil. 

(S.  L.  1913,  p.  167,  Sec.  3.)     Compare  with  Sec.  28  herein. 

§  54.  Pipe  Line  Operators  to  Be  Common  Carriers. — Every 
corporation,  joint  stock  company,  limited  copartnership,  part- 
nership or  other  person,  now  or  hereafter  engaged  in  the  busi- 
ness of  carrying  or  transporting  natural  gas  for  hire,  for  com- 
pensation or  otherwise,  by  pipe  line  or  pipe  lines,  within  this 
State,  and  by  virtue  of  and  in  conformity  to,  any  valid  law 
incapable  of  revocation  by  any  law  of  this  State  or  of  the 
United  States,  or  by  virtue  of  and  hi  conformity  of  the  pro- 
visions of  this  act,  shall  be  a  common  carrier  thereof  as  at  com- 
mon law,  and  no  such  common  carriers  shall  allow  or  be  guilty 
of  any  unjust  or  any  unlawful  discrimination,  directly  or  indi- 
rectly, in  favor  of  the  carriage,  transportation  or  delivery  of 
any  natural  gas,  offered  to  it,  in  its  possession  or  control,  or 
in  which  it  may  be  interested,  directly  or  indirectly,  and,  pro- 
vided further,  that  any  person,  firm  or  corporation  owning  or 
operating  a  gas  pipe  line  within  the  limits  of  any  incorporated 
city  or  town  in  this  State  shall  be  exempted  from  the  provisions 
of  this  section  only  as  to  its  distributing  lines  located  wholly 
within  the  corporate  limits  of  said  city  or  town. 

(S.  L.  1919,  p.  174,  Sec.  1;  amending  S.  L.  1913,  p.  168,  Sec.  4.) 


GAS  PIPE  LINES  45 

§  55.  Non-compliance  with  Act  Made  Unlawful. — It  shall  be 
unlawful  for  any  corporation,  joint  stock  company,  limited  co- 
partnership, partnership  or  other  person,  now  or  hereafter  en- 
gaged in  the  business  of  carrying  or  transporting  natural  gas 
for  hire  or  compensation  or  otherwise,  within  the  limits  of  this 
act  and  not  becoming  a  common  purchaser  as  defined  by,  and 
accepting  the  provisions  of  this  act,  to  own  or  operate,  di- 
rectly or  indirectly  any  gas  well  or  wells,  gas  leases,  or  gas 
holdings  or  interests  in  this  state,  after  six  months  next  after 
the  approval  of  this  act,  and  each  and  every  of  said  corpora- 
tions, joint  stock  company,  limited  copartnership,  partnership 
or  other  persons  shall  divest  themselves  of  all  legal  or  equitable 
ownership,  interest  or  control,  directly  or  indirectly,  in  gas 
well  or  wells,  gas  leases  or  gas  holdings  or  interest  in  this  State. 
(S.  L.  1913,  p.  169,  Sec.  5.) 

§  56.  Prerequisite  to  Carrying  Gas. — Before  any  corporation, 
joint  stock  company,  limited  copartnership,  partnership  or 
other  persons  shall  have,  possess,  enjoy  or  exercise  the  right 
of  eminent  domain,  right-of-way,  right  to  locate,  maintain  or 
operate  pipe  lines,  fixtures  or  equipment  thereunto  belonging, 
or  used  in  connection  therewith,  as  authorized  by  the  provi- 
sions of  this  act,  or  shall  have,  possess,  enjoy  or  exercise  any 
right  (the  word  "right"  in  this  connection  being  used  in  its 
most  comprehensive  legal  sense)  conferred  by  this  act,  every 
such  corporation,  joint  stock  company,  limited  copartnership, 
partnership  or  other  person,  shall  file  in  the  office  of  said  Cor- 
poration Commission  proper  and  explicit  authorized  acceptance 
of  the  provisions  of  this  act  and  the  Constitution  of  this  State, 
in  cases  of  pipe  lines  a  plat  showing  in  detail  the  points 
within  this  State  between  which,  and  the  route  along  which 
the  trunk  lines  are  proposed  to  be  constructed,  the  intended 
size  and  capacity  thereof,  and  the  location  and  capacity  of  all 
pumping  stations,  gate  valves,  cheek  valves  and  connections 
and  appliances  of  all  kinds  used,  or  to  be  used,  on  said  trunk 
or  lines ;  and  upon  demand  of  the  Corporation  Commission  the 
proper  party  or  parties,  as  required  by  said  Commission,  shall 


46  OKLAHOMA  OIL  AND  GAS  LAWS 

properly  file  a  plat  showing  in  detail  all  the  lines  owned  and 
operated  by  them  respectively,  with  full  and  explicit  informa- 
tion as  to  their  capacity,  size  and  location,  and  the  capacity 
of  their  pumping  stations,  gate  valves,  check  valves  and  con- 
nections of  all  kinds,  respectively,  required  or  used  in  the 
operation  thereof. 

(S.  L.  1913,  p.  169,  Sec.  6.) 

§  57.  The  Right  to  Use  Highways. — Every  domestic  pipe  line 
company  in  this  State  is  hereby  given  authority  to  build,  con- 
struct, lay  and  maintain  gas  pipe  lines,  over,  under,  across  or 
through  all  highways,  bridges,  streets  or  alleys  in  this  State 
or  any  public  place  under  the  supervision  of  the  Corporation 
Commission  as  to  where  and  how  in  said  highways,  bridges, 
streets,  alleys  and  public  places  said  pipe  lines  shall  be  laid. 
Provided  the  right  to  lay  gas  pipe  lines  in  cities  shall  be 
acquired  as  now  provided  by  law,  and  subject  to  the  responsi- 
bility as  otherwise  provided  by  law  for  any  negligent  injury 
thereby  caused.  All  persons,  natural  or  artificial,  except  for- 
eign corporations,  shall  have  the  right  of  eminent  domain,  and 
any  right  or  privilege  hereby  conferred,  when  necessary  to 
make  effective  the  purposes  of  this  act  and  the  rights  thereby 
conferred.  Foreign  corporations  organized  under  the  laws  of 
any  other  State  or  territory,  or  the  United  States,  and  doing 
or  proposing  to  do  business  in  this  State,  and  which  shall  have 
become  a  body  corporate  pursuant  to  or  in  accordance  with  the 
laws  of  this  state,  and  which,  as  hereby  provided,  shall  have 
registered  its  acceptance  of  the  terms  hereof,  shall  receive  all 
the  benefits  by  this  act  provided. 
(S.  L.  1913,  p.  170,  Sec.  7.) 

§  58.  Filing  Records  with  Corporation  Commission. — Upon  a 
sworn  statement  of  the  necessities  which  would  justify  a  judi- 
cial continuance,  the  Corporation  Commission  is  authorized  to 
extend  the  time  for  the  filing  of  the  said  plats,  not,  however, 
to  exceed  60  days. 

(S.  L.  1913,  p.  171,  Sec.  8.) 


GAS  PIPE  LINES  47 

§  59.  Amount  of  Gas  to  Be  Taken. — Every  Corporation,  joint 
stock  company,  limited  co-partnership,  partnership  or  other 
person,  now  or  hereafter  claiming  or  exercising  the  right  to 
produce  natural  gas,  or  to  carry  or  to  transport  natural  gas 
through  pipe  line  or  pipe  lines,  for  hire,  compensation,  or 
otherwise  within  the  limits  of  this  state,  is  allowed  by,  end 
upon  compliance  with  the  requirements  of  this  act,  as  owner, 
lessee,  licensee,  or  by  virtue  of  any  other  right  or  claim,  is 
hereby  prohibited  from  taking  more  than  twenty-five  (25)  per 
cent  of  the  daily  natural  flow  of  any  gas  well  or  wells  unless 
for  good  cause  shown,  under  the  exigencies  of  the  particular 
case  the  Corporation  Commission  shall  establish  a  different  per 
centum  under,  the  prescribed  rules  and  regulations  therefor. 
(S.  L.  1913,  p.  171,  Sec.  9.)  Compare  with  Sec.  27  herein. 

§  60.  Meter  Requirements. — No  corporation,  joint  stock  com- 
pany, limited  co-partnership,  partnership  or  person  doing  busi- 
ness under  the  provisions  of  this  act  shall  purchase,  collect, 
transport,  convey  or  sell  any  gas  from  any  wells  in  this  State 
except  such  gas  as  is  run  through  properly  constructed  meters, 
the  daily  readings  of  which  shall  be  carefully  and  accurately 
taken  every  twenty-four  hours  (24),  and  of  which  a  true  and 
correct  report  under  oath  shall  be  made  every  month  and  which 
report  of  all  such  business  transacted  during  the  next  preced- 
ing month  shall  be  filed  not  later  than  the  fifteenth  (15th)  day 
of  each  and  every  month  with  the  Corporation  Commission  and 
which  report  shall  at  all  times  be  open  to  the  inspection  of  the 
public.  Such  report  shall  be  based  upon  such  daily  meter  read- 
ings ;  shall  show  the  amount  of  gas  run  or  purchased  from  each 
tract  of  lands,  lease  or  leasehold  estate,  the  names  of  the  seller 
or  sellers  of  such  gas  and  of  the  purchaser  or  purchasers  there- 
of; and  any  person  or  persons  making  or  directing,  counseling, 
advising,  aiding  or  abetting  in  the  making  or  filing  of  any  false 
report  in  the  premises  shall  be  deemed  guilty  of  perjury,  and 
on  c6nviction  thereof  be  punished  as  provided  by  law;  and  to 
the  jend  that  such  meters  shall  be  properly  constructed,  main- 
tained, repaired  and  operated,  their  installation,  use  and  opera- 


48  OKLAHOMA  OIL  AND  GAS  LAWS 

tion  shall  at  all  times  be  subject  to  such  rules  and  regulations 
as  the  Corporation  Commission  may  prescribe. 
(S.  L.  1913,  p.  172,  Sec.  10.) 

§  61.  Penalty  for  Violation  of  Act. — Any  person,  co-partner- 
ship, or  corporation,  its  agents  or  employees,  violating  any  of 
the  provisions  of  this  act,  or  any  order  of  a  court  of  compe- 
tent jurisdiction  of  this  State,  or  the  Corporation  Commission, 
pursuant  to  the  jurisdiction  conferred  by  this  act,  shall,  upon 
conviction  thereof,  be  fined  a  sum  of  not  less  than  one  thousand 
dollars  ($1,000.00),  nor  more  than  five  thousand  dollars 
($5,000.00),  or  imprisonment  not  less  than  six  months,  nor 
more  than  one  year,  or  by  both  such  fine  and  imprisonment  for 
each  and  every  violation  of  this  act ;  but  in  case  the  monthly 
runs  or  takings  or  transportation  of  gas  shall  average  so  as 
to  be  without  discrimination,  as  herein  provided,  a  transaction 
or  transactions  of  any  particular  day  or  week  or  portion  of  a 
month  shall  be  disregarded ;  and  the  court  of  competent  juris- 
diction of  the  county  in  which  the  omission  or  commission, 
which  is  in  violation  of  this  act,  has  occurred,  shall  have  juris- 
diction of  an  action  under  the  Penal  Code  for  the  punishment 
thereof;  and  that  said  penalties  shall  not  be  exclusive  of  civil 
liability. 

(S.  L.  1913,  p.  172,  Sec.  11.) 

§  62.  Receivership  Authorized. — The  Corporation  Commis- 
sion shall,  upon  being  reasonably  satisfied  that  any  corporation 
has  violated  the  provisions  of  this  act,  recommend  to  the  At- 
torney General  that  a  receiver  be  appointed  for  such  corpora- 
tion. Upon  receipt  of  the  recommendation  by  the  Attorney 
General,  he  shall  within  ten  days  file  a  petition  on  behalf  of 
the  State  in  any  court  of  competent  jurisdiction,  praying  that 
a  receiver  be  appointed,  and  such  court  shall  immediately  con- 
sider the  application  and  appoint  a  receiver,  if  in  the  judgment 
of  the  court  the  provisions  of  this  act  have  been  wilfully  vio- 
lated. The  receiver,  when  appointed,  shall  immediately  take 
charge  of  all  the  business,  property  and  assets  of  such  corpora- 


GAS  PIPE  LINES  49 

tion  in  the  State  and  shall  retain  possession  thereof  until  it 
shall  be  determined  upon  the  trial  whether  or  not  such  corpo- 
ration has  violated  the  provisions  of  this  act,  then,  in  addition 
to  the  other  penalties  herein  provided,  all  the  property  of  said 
corporation  shall  be  retained  under  such  receivership  until  the 
penalties  incurred  hereunder  are  paid,  after  which  the  receiver- 
ship may  be  discharged  upon  such  terms  and  conditions  as  the 
court  may  impose  as  an  assurance  for  the  further  compliance 
with  this  act. 

(S.  L.  1913,  p.  173,  Sec.  12.) 

§  63.  Reports  of  Gas  Companies  as  Evidence. — A  properly 
certified  transcript  of  the  report  of  any  such  corporation,  as- 
sociation, or  person,  shall,  as  against  the  makers  thereof,  be 
prima  facie  evidence  of  the  truth  of  any  matter  therein 
contained. 

(S.  L.  1913,  p.  174,  Sec.  13.) 

§  64.  Enforcement  by  Corporation  Commission. — The  Corpo- 
ration Commission  is  hereby  authorized  and  empowered  to  en- 
force all  the  provisions  of  this  act,  including  the  employment 
of  requisite  help  and  gas  experts  to  carry  out  the  same,  except 
where  jurisdiction  is  conferred  on  some  other  branch  of  the 
State  government  by  the  Constitution  of  this  State;  appeals 
may  be  allowed  from  the  decision  of  the  Commission  to  the 
Supreme  Court  as  now  provided  by  law  for  appeals  in  other 
cases. 

(S.  L.  1913,  p.  174,  Sec.  14.)     Compare  with  Sec.  19  herein. 


CHAPTER    XI. 

DOMESTIC  CORPORATIONS  MAY  PURCHASE  GAS  FROM 
FOREIGN  CORORATIONS. 

I  65.  Purchasing  gas  from  interstate  pipe  lines. 
66.  Foreign  and  domestic  corporations  to  have  separate  ownership. 

§  65.  Purchasing  Gas  from  Interstate  Pipe  Lines.— All  do- 
mestic gas  pipe  line  corporations  in  this  State,  which  are  now, 
or  shall  hereafter  fully  comply  with  the  laws  of  this  State,  and 
all  municipal  corporations,  owning  or  operating  a  gas  plant, 
or  which  may  hereafter  own  or  operate  a  gas  plant,  may  con- 
tract with  and  secure  from  foreign  corporations,  operating  in- 
terstate gas  pipe  lines,  the  supply  of  gas  for  said  domestic  gas 
companies.  And  said  interstate  gas  pipe  line  companies  or 
foreign  corporations  may  enter  into  said  contract  and  deliver 
said  gas,  upon  obtaining  a  license  from  the  Corporation  Com- 
mission, which  is  hereby  authorized  to  grant  a  license  to  do 
and  transact  that  particular  business  of  supplying  domestic 
corporations  with  natural  gas,  and  the  taking  out  of  said  li- 
cense and  the  conduct  of  said  business  with  domestic  pipe  line 
companies,  shall  not  prejudice  the  said  interstate  pipe  line 
companies,  or  foreign  corporations  in  the  transaction  and  con- 
ducting of  their  interstate  business ;  provided,  the  Corporation 
Commission  may  revoke  said  license  when,  in  its  discretion, 
the  public  may  be  best  subserved  thereby. 
(S.  L.  1913,  p.  165,  Sec.  1.) 

§  66.  Foreign  and  Domestic  Corporations  to  Have  Separate 
Ownership. — No  person  or  corporation,  interested  or  doing 
business  as  an  interstate  gas  pipe  line  company,  shall  be  inter- 
ested in  or  own  or  control  any  of  the  stock  of  a  domestic  cor- 
poration, purchasing  gas  from  an  interstate  pipe  line  company. 
(S.  L.  1913,  p.  1C5,  Sec.  2.) 


50 


CHAPTER    XII. 

OIL  PIPE  LINES. 

J  67.  Oil  companies  must  comply  with  this  article. 
C8.  Right  of  way. 
C9.  Foreign  corporations, 

70.  Common  purchasers  of  oil. 

71.  Same — exceptions. 

72.  Oil  carriers  are  common  carriers. 

73.  Not  to  be  interested  in  producing. 

74.  Acceptance  of  laws  and  plats  to  be  filed. 

75.  Domestic  companies  have  right  of  way. 

76.  The  right  of  eminent  domain. 

77.  Commisison  may  extend  time. 

78.  Penalty  for  violations. 

79.  Suspension  of  penalty,  when. 

80.  Certified  transcript  shall  be  evidence. 

81.  May  extend  time  for  operation  of  law. 

§  67.  Oil  Companies  Must  Comply  with  This  Article. — Every 
corporation,  joint  stock  company,  partnership  or  other  person, 
exercising  or  claiming  the  right  to  carry  or  transport  crude 
oil  or  petroleum,  or  any  of  the  products  thereof,  by  or  through 
pipe  lines,  for  hire  or  otherwise,  or  exercising  or  claiming  the 
right  to  engage  in  the  business  of  producing  crude  oil  or 
petroleum,  or  of  refining  it,  or  manufacturing  any  of  the  prod- 
ucts thereof,  or  of  storing  crude  oil  or  petroleum  produced  by 
it,  or  any  other  person,  or  engaging  in  the  business  of  buying, 
selling  or  dealing  in  crude  oil  or  petroleum,  within  the  limits 
of  this  State,  shall  not  have  or  possess  the  right  to  conduct  or 
engage  in  said  business  or  operation,  in  whole  or  in  part,  as 
above  described,  or  have  or  possess  the  right  to  locate,  main- 
tain or  operate  the  necessary  pipe  lines,  fixtures  and  equipment 
thereunto  belonging,  or  used  in  connection  therewith,  concern- 
ing the  said  business  of  carrying  or  transporting  crude  oil  or 
petroleum  as  aforesaid,  on,  over,  along,  across,  through,  in  or 
under  any  present  or  future  highway,  or  part  thereof,  within 

61 


52  OKLAHOMA  OIL  AND  GAS  LAWS 

this  State,  or  have  or  possess  the  right  of  eminent  domain  or 
any  other  rights,  concerning  said  business  or  operations,  in 
whole  or  in  part,  except  as  authorized  by  and  subject  to  the 
provisions  of  this  article,  and  except  such  rights  as  may  already 
exist  which  are  valid,  vested,  and  incapable  of  revocation  by 
any  law  of  this  State  or  of  the  United  States.  The  word 
"petroleum"  as  used  herein  means  all  crude  oil  and  its  manu- 
factured products,  not  including  natural  gas. 
(Sec.  4304,  Rev.  Laws  1910.) 

§  68.  Right-of-Way. — For  the  purpose  of  acquiring  necessary 
right-of-way,  every  such  person  is  hereby  granted  the  right  of 
condemnation  by  eminent  domain,  and  the  use  of  the  highways 
in  this  State,  for  the  purpose  of  transporting  petroleum  by 
pipe  lines,  and  the  location,  laying,  construction,  maintaining 
and  operation  thereof.1 

(Sec.  4305,  Rev.  Laws  1910.)     Texas  Co.  v.  Henry,  34  Okla. 
342,  126  Pac.  224. 

§  69.  Foreign  Corporations. — Corporations  of  other  states  or 
territories,  or  of  the  United  States,  otherwise  admissible  to 
do  business  in  this  State  may  get  the  benefit  of  this  article 
upon  compliance  with  the  laws  and  constitution  of  this  State, 
including  the  provisions  of  Section  31,  of  Article  IX,  of  the 
Constitution,  but  until  such  compliance  they  shall  have  no  right 
in,  on  or  under  the  highways. 

(Sec.  4306,  Rev.  Laws  1910.) 

§  70.  Common  Purchasers  of  Oil. — Every  corporation,  joint 
stock  company,  partnership  or  other  person,  claiming  or  exer- 
cising the  right  to  carry  or  transport  crude  oil  or  petroleum 
or  any  of  the  products  thereof,  by  pipe  line  for  hire  or  other- 
wise, within  the  limits  of  this  State,  as  allowed  by,  and  upon 
compliance  with  the  requirements  of  this  article,  as  owner, 
lessee,  licensee,  or  by  virtue  of  any  other  right  or  claim,  which 
is  engaged  in  the  business  of  purchasing  crude  oil  or  petroleum 

1  Oil  pipe  line  companies  may  exercise  the  right  of  eminent  domain 
in  like  manner  as  railroad  companies.  Sec.  3186,  Rev.  Laws  1910. 


OIL  PIPE  LINES  53 

therein,  shall  be  deemed  a  common  purchaser  thereof,  and 
shall  purchase  all  of  the  petroleum  in  the  vicinity  of,  or  which 
may  be  reasonably  reached  by  its  pipe  lines,  or  gathering 
branches,  without  discrimination  in  favor  of  one  producer  or 
one  person  as  against  another;  and  shall  fully  perform  all  the 
duties  of  a  common  purchaser ;  but  if  it  shall  be  unable  to  per- 
form the  same,  or  shall  be  legally  excusable  from  purchasing 
and  transporting  all  of  the  petroleum  produced,  then  it  shall 
purchase  and  transport  petroleum  from  each  person  and  pro- 
ducer ratably,  in  proportion  to  the  average  daily  production; 
and  such  common  purchasers  are  hereby  expressly  prohibited 
from  discriminating  in  price  or  amount  for  like  grades  of  oil, 
or  facilities  as  between  producers  or  persons ;  and  in  the  event 
such  purchaser  is  likewise  a  producer,  it  is  hereby  prohibited 
from  discriminating  in  favor  of  its  own  production,  or  storage, 
or  production  or  storage  in  which  it  may  be  interested,  directly 
or  indirectly  in  whole  or  in  part,  and  its  own  production  and 
storage  shall  be  treated  as  that  of  any  other  person  or  producer. 
(Sec.  4307,  Rev.  Laws  1910.) 

§  71.  Same— Exceptions. — All  persons,  firms,  associations, 
and  corporations  are  exempt  from  the  provisions  of  this  article 
where  the  nature  and  extent  of  their  business  are  such  that  the 
public  needs  no  use  in  the  same  and  the  conduct  of  the  same 
is  not  a  matter  of  public  consequence ;  and  for  this  purpose  the 
district  courts  of  the  State  and  the  corporation  commission  are 
vested  with  jurisdiction  to  determine  such  exemptions  in  any 
action  or  proceeding  properly  before  them,  as  provided  in  this 
article.2 

(Sec.  4308,  Rev.  Laws  1910.) 

§  72.  Oil  Carriers  Are  Common  Carriers. — Every  corporation, 
joint  stock  company,  partnership  or  person  engaged  in  the 
business  of  carrying  or  transporting  crude  oil  or  petroleum  or 
any  of  the  products  thereof  for  hire  or  otherwise,  by  pipe  line, 


2  By  the  provisions  of  Sec.  2,  S.  L.  1917,  page  385,  (Sec.  19  herein) 
the  Corporation  Commission  is  given  exclusive  Jurisdiction  over  the 
construction  and  regulation  of  oil  and  gas  pipe  lines. 


54 

within  this  State,  and  by  virtue  of  and  in  conformity  to  any 
valid  law  incapable  of  revocation  by  any  laws  of  this  State  or 
of  the  United  States,  or  by  virtue  of  and  in  conformity  to  the 
provisions  of  this  article,  shall  be  deemed  a  common  carrier 
thereof  as  at  common  law;  and  no  such  common  carrier  shall 
allow  or  be  guilty  of  any  unjust  or  unlawful  discrimination, 
directly  or  indirectly,  in  favor  of  the  carriage,  transportation, 
storage  or  delivery  of  any  crude,  stock  or  storage  oil,  or  any 
product  thereof,  in  its  possession  or  control,  or  in  which  it  may 
be  interested,  directly  or  indirectly.3 
(Sec.  4309,  Rev.  Laws  1910.) 

§  73.  Not  to  Be  Interested  in  Producing. — It  shall  be  unlaw- 
ful for  any  corporation,  joint  stock  company,  partnership  or 
person  engaged  in  the  business  of  carrying  or  transporting 
crude  oil  or  petroleum  or  any  of  the  products  thereof,  for  hire 
or  otherwise,  within  the  limits  of  this  article,  and  not  becoming 
a  common  purchaser  as  defined  by,  and  accepting  the  provi- 
sions of  this  article,  to  own  or  operate,  directly  or  indirectly, 
any  oil  well,  oil  leases  or  oil  holdings  or  interests  in  this  State, 
and  each  of  said  corporations,  joint  stock  companies,  partner- 
ships or  persons  shall  divest  themselves  of  all  legal  or  equitable 
ownership,  interest  or  control,  directly  or  indirectly,  in  oil 
wells,  or  leases  or  oil  holdings  or  interests  in  this  State. 
(Sec.  4310,  Rev.  Laws  1910.) 

§  74.  Acceptance  of  Laws  and  Plats  to  Be  Piled. — Before  any 
corporation,  joint  stock  company,  partnership  or  person  shall 
have,  possess,  enjoy  or  exercise  the  right  of  eminent  domain, 
right-of-way,  right  to  locate,  maintain  or  operate  pipe  lines, 
fixtures  or  equipment  thereunto  belonging,  or  used  in  connec- 
tion therewith,  as  authorized  by  the  provisions  of  this  article, 
or  shall  have,  possess,  enjoy  or  exercise  any  right  (the  word 

8  A  pipe  line  for  the  transportation  of  oil  for  hire  betwen  two  points 
within  the  state  is  a  common  carrier,  see  Pierce  Oil  Corp.  v.  Phoanix 
Refining  Co.,  79  Okla.  36,  190  Pac.  857. 

On  the  subject  of  interstate  pipe  lines  as  common  carriers,  see  "The 
Pipe  Line  Cases".  234  U.  S.  548,  34  Sup.  Ct.  956,  58  L.  Ed.  1459. 


OIL  PIPE  LINES  55 

"right"  in  this  connection  being  used  in  its  most  compre- 
hensive legal  sense)  conferred  by  this  article,  every  such  cor- 
poration, joint  stock  company,  partnership  or  other  person 
shall  file  in  the  office  of  the  Corporation  Commission  a  proper 
and  explicit  authorized  acceptance  of  the  provisions  of  this 
article  and  the  Constitution  of  this  State,  and,  in  cases  of  pipe 
lines,  a  plat  showing  in  detail  the  points  within  this  State 
between  which,  and  the  route  along  which,  the  trunk  lines  are 
proposed  to  be  constructed,  the  intended  size  and  capacity 
thereof,  and  the  location  and  capacity  of  all  pumping  stations, 
gate  valves,  check  valves  and  connections  and  appliances  of 
all  kinds  used,  or  to  be  used,  on  said  trunk  lines;  and  upon 
demand  of  the  Corporation  Commission,  the  proper  parties,  as 
required  by  said  Commission,  shall  promptly  file  a  plat  showing 
in  detail  all  the  lines  owned  and  operated  by  them  respectively, 
with  full  and  explicit  information  as  to  their  capacity,  size 
and  location,  and  the  capacity  of  their  pumping  stations,  gate 
valves,  check  valves  and  connections,  of  all  kinds,  required  or 
used  in  the  operation  thereof. 

(Sec.  4311,  Rev.  Laws  1910.) 

§  75.  Domestic  Companies  Have  Right-of-Way. — Every  do- 
mestic pipe  line  company  in  this  State  is  hereby  given  author- 
ity to  build,  construct,  lay  and  maintain  oil  pipe  lines  over, 
under,  across  or  through  all  highways,  bridges,  streets  or  alleys 
in  this  State,  or  any  public  place  therein,  under  the  super- 
vision of  the  inspector  of  oil  and  gas  wells  and  pipe  lines  as 
to  where  and  how  in  said  highways,  bridges,  streets,  alleys 
and  public  places  said  pipe  lines  shall  be  laid,  and  subject  to 
the  control  of  the  local  municipalities,  as  to  how  the  business 
of  distribution  in  that  municipality  shall  be  conducted,  and 
subject  to  responsibility  as  provided  by  law  for  any  negligent 
injury  thereby  caused. 

(Sec.  4312,  Rev.  Laws  1910.) 

§  76.  The  Eight  of  Eminent  Domain.— All  persons,  natural  or 
artificial,  except  foreign  corporations,  shall  have  the  right  of 


56  OKLAHOMA  OIL  AND  GAS  LAWS 

eminent  domain,  and  any  right  or  privilege  hereby  conferred, 
when  necessary  to  make  effective  the  purposes  of  this  article 
and  the  rights  thereby  conferred.  Foreign  corporations  organ- 
ized under  the  laws  of  any  other  State,  or  the  United  States, 
and  doing  or  proposing  to  do  business  in  this  State,  and  which 
shall  have  become  a  body  corporate  pursuant  to  or  in  accord- 
ance with  the  laws  of  this  State,  and  which,  as  hereby  provided, 
shall  have  registered  its  acceptance  of  the  terms  hereof,  shall 
receive  all  the  benefits  provided  by  this  article. 
(Sec.  4313,  Rev.  Laws  1910.) 

§  77.  Commission  May  Extend  Time. — Upon  a  sworn  state- 
ment of  the  necessities  which  would  justify  a  judicial  con- 
tinuance, the  Corporation  Commission  is  authorized  to  extend 
the  time  for  the  filing  of  the  said  plats,  not,  however,  to  exceed 
sixty  days. 

(Sec.  4314,  Rev.  Laws  1910.) 

§  78.  Penalty  for  Violations. — Any  person,  co-partnership  or 
corporation,  its  agent  or  employee,  violating  any  of  the  pro- 
visions of  this  article,  or  any  order  of  the  competent  courts 
of  this  State,  or  the  Corporation  Commission,  pursuant  to  the 
jurisdiction  conferred  by  this  article,  shall,  upon  conviction 
thereof,  be  fined  a  sum  of  not  less  than  one  thousand  dollars, 
nor  more  than  five  thousand  dollars,  or  imprisonment  for  not 
less  than  six  months,  nor  more  than  one  year,  or  by  both  such 
fine  and  imprisonment  for  each  and  every  violation  of  this 
article;  but  in  case  the  monthly  runs  or  takings  or  transpor- 
tation of  oil  shall  average  so  as  to  be  without  discrimination, 
as  herein  provided,  the  transactions  of  any  particular  day, 
week  or  portion  of  a  month  shall  be  disregarded ;  and  the  com- 
petent court  of  the  county  in  which  the  omission  or  commission 
which  is  a  violation  of  this  article  has  occurred  shall  have 
jurisdiction  of  an  action  under  the  penal  code  for  the  punish- 
ment thereof ;  and  said  penalties  shall  not  be  exclusive  of  civil 
liability. 

(Sec.  4816,  Rev.  Laws  1910.) 


OIL  PIPE  LINES  57 

§  79.  Suspension  of  Penalty,  When. — Whenever  the  opera- 
lion  of  a  valid  order  of  a  competent  court  or  the  Corporation 
Commission  is  duly  suspended,  according  to  law,  the  punitive 
provisions  of  this  article  shall  likewise  be  suspended  in  their 
operation  as  to  the  transactions  adjudicated  in  said  court ;  and 
further,  any  court  having  jurisdiction  of  an  action  brought  by 
the  State  to  punish  for  a  violation  under  the  terms  of  this 
article,  shall  not  impose  a  punishment  therefor  greater  than 
five  hundred  dollars  against  any  person  or  corporation,  if  it 
finds  from  the  evidence  that  the  violation  was  made  solely 
with  the  object  of  testing  according  to  law  the  validity  of  any 
of  the  provisions  of  this  article,  or  of  the  order  of  any  compe- 
tent court  or  of  the  Corporation  Commission,  in  any  proceeding 
to  carry  out  the  provisions  hereof. 
(Sec.  4316,  Rev.  Laws  1910.) 

§  80.  Certified  Transcript  Shall  Be  Evidence.— A  properly 
certified  transcript  of  the  report  of  any  such  corporation,  asso- 
ciation or  person  shall,  as  against  the  maker  thereof,  be  prima 
facie  evidence  of  the  truth  of  any  matter  therein  contained. 
(Sec.  4317,  Rev.  Laws  1910.) 

§  81.  May  Extend  Time  for  Operation  of  Law. — For  good 
cause  shown,  the  Corporation  Commission  is  authorized  to  ex- 
tend the  time  within  which  this  article  shall  operate  as  to  any 
particular  corporation,  association  or  person,  not  to  exceed 
nine  nxonths  after  the  same  becomes  effective. 
(Sec.  4318,  Rev.  Laws  1910.) 


CHAPTER   XIII. 

ASSESSMENT  OF  GAS  AND  PIPE  LINE  COMPANIES. 

§  82.  Definition  of  terms. 

83.  Annual  sworn  list. 

84.  Statement  of  pipe  lines. 

85.  Statement  of  gas  companies. 

86.  Penalty  for  failure  to  list. 

§  82.  Definition  of  Terms. — As  used  in  this  article  the  term 
"transportation  company"  shall  include  any  company,  corpo- 
ration, trustee,  receiver  or  any  other  person  owning,  leasing  or 
operating  for  hire  a  railroad,  street  railway,  canal,  steamboat 
line,  and  also  any  freight  car  company,  or  company,  trustee  or 
person  in  any  way  engaged  in  such  business  as  a  common  car- 
rier. The  term  "transmission  company"  shall  include  any 
company,  corporation,  trustee,  receiver  or  other  person  owning, 
leasing  or  operating  for  hire  any  telegraph  or  telephone  line. 
The  term  "public  service  corporation,"  as  used  in  this  article, 
shall  include  all  transportation  and  transmission  companies,  all 
gas,  electric,  light,  heat  and  power  companies  and  all  water- 
works and  water  power  companies,  and  all  persons  authorized 
to  exercise  the  right  of  eminent  domain  or  to  use  or  occupy  any 
right-of-way,  street,  alley,  or  public  highway,  along,  over  or 
under  the  same  in  a  manner  not  permitted  to  the  general  pub- 
lic. The  term  "person,"  as  used  in  this  article,  shall  include 
individuals,  partnerships,  associations  and  corporations,  in  the 
singular  as  well  as  plural  number. 
(Sec.  7336,  Rev.  Laws  1910.) 

Prairie  Oil  &  Gas  Co.  v.  Cruce,  45  Okla.  774,  147  Pac.  182; 
Lusk  v.  State,  47  Okla.  648,  150  Pac.  15L 

§  83.  Annual  Sworn  List. — Every  public  service  corporation 
organized,  existing  or  doing  business  in  this  State  shall  on  or 
before  the  last  day  of  February  of  each  year  return  sworn 
lists  or  schedules  of  its  taxable  property  as  hereinafter  pro- 

58 


ASSESSMENT  OP  GAS  AND  PIPE  LINE  COMPANIES        59 

vided,  or  as  may  be  required  by  the  State  board  of  equaliza- 
tion, and  such  property  shall  be  listed  with  reference  to  amount, 
kind  and  value  on  the  first  day  of  February  of  the  year  in 
which  it  is  listed;  and  said  property  shall  be  subject  to  taxa- 
tion for  State,  county,  municipal,  public  school  and  other  pur- 
poses, to  the  same  extent  as  the  real  and  personal  property  of 
private  persons. 

(Sec.  7338,  Rev.  Laws  1910.)  In  re  Indian  Territory  Illum- 
ination Oil  Co.,  43  Okla.  307,  142  Pac.  997;  In  re  Assign- 
ment of  Western  Union  Tel.  Co.,  35  Okla.  626,  130  Pac.  565; 
McCarter  v.  State,  82  Okla.  78,  198  Pac.  303. 


§  84.  Statement  of  Pipe  Lines. — Each  pipe  line  company  do- 
ing business  in  this  State  shall  return  to  the  State  auditor 
sworn  statement  or  schedule  as  follows: 

First.  Of  the  right-of-way  and  main  line,  giving  the  entire 
length  of  main  line  in  this  and  other  States,  showing  the  size 
of  pipe  and  showing  the  proportion  in  each  city,  school  dis- 
trict, township  and  county,  and  the  total  in  this  State. 

Second.  The  total  length  of  each  lateral  or  branch  line  and 
the  size  of  the  pipe,  together  with  the  name  of  each  city,  school 
district,  township  and  county  in  which  such  lateral  and  branch 
lines  are  located. 

Third.  A  complete  list  giving  location  as  to  city,  township, 
school  district  or  county  of  all  pumping  stations,  storage 
depots,  machine  shops,  or  other  buildings  together  with  all 
machinery,  tools,  tanks  and  material. 

Fourth.  A  statement  or  schedule  showing  the  amount  of  its 
authorized  capital  stock  and  the  number  of  shares  into  which 
the  same  is  divided;  the  amount  of  capital  stock  paid  up;  the 
market  value  of  such  stock,  or  if  it  has  no  market  value,  then 
the  actual  value  thereof,  and  the  total  amount  of  outstanding 
bonded  indebtedness. 


60  OKLAHOMA  OIL  AND  GAS  LAWS 

Fifth.  A  correct  detailed  statement  of  all  other  personal 
property,  including  oil  in  storage  and  cash  on  hand,  and  giv- 
ing the  location  thereof. 

(Sec.  7341,  Rev.  Laws  1910.) 

§  85.  Statement  of  Gas  Companies. — All  gas,  light,  heat  and 
power  companies  shall  annually  return  to  the  State  auditor 
sworn  statement  showing  the  size  and  total  length  of  pipe 
owned  by  such  company  and  the  location  thereof,  giving  the 
county,  city,  township  and  school  district  •  a  statement  of  fran- 
chises held  by  such  company  from  any  municipal  corporation 
in  this  State,  the  length  of  time  the  same  are  to  run,  and  the 
conditions  under  which  they  were  granted ;  and  a  statement  of 
all  buildings  and  other  permanent  improvements,  pumping  sta- 
tions, tools,  material  and  other  personal  property,  including 
cash  on  hand  and  the  location  thereof. 

(Sec.  7343,  Rev.  Laws  1910.)     In  re  Oklahoma  Gas  &  Electric 
Co.   (Okla.),  171  Pac.  27. 

§  86.  Penalty  for  Failure  to  List. — If  any  public  service  cor- 
poration doing  business  in  this  State  shall  fail  or  refuse  to 
make  the  statements  or  schedule  to  the  State  auditor  required 
by  the  provisions  of  this  article,  it  shall  be  liable  to  a  penalty 
of  five  thousand  dollars  for  each  offense,  to  be  recovered  at  the 
suit  of  the  State  in  any  court  of  competent  jurisdiction. 
(Sec.  7347,  Rev.  Laws  1910.) 


CHAPTER    XIV. 

INSPECTION  LAWS. 

§  87.  Oils  to  be  inspected. 

88.  Terms  defined. 

89.  Compensation  and  duties  of  inspectors. 

90.  Inspectors  to  follow  rules  of  Corporation  Commission. 

91.  Penalty  for  sale  of  inferior  products. 

92.  Inspection,  how  made. 

93.  Additional  rules  and  regulations. 

94.  Fees  for  inspection. 

95.  False  test,  penalty. 

96.  Oil  condemned  may  be  used  for  what  purposes. 

97.  Sale  of  uninspected  oils. 

98.  Penalty  for  hindering  inspection. 

99.  Law  not  to  apply,  when. 

100.  Failure  to  erase  marks  or  brands. 

101.  Misconduct  of  inspector. 

102.  Alteration   of   inspector's   marks,  penalty. 

103.  Unlawful  sale  of  oil. 

104.  Civil  liability  for  unlawful  sale. 

105.  Adulteration. 

106.  Recovery  of  fines  and  penalties. 

107.  Liability  of  manufacturers  and  wholesalers. 

108.  Prosecutions. 

§  87.  Oils  to  Be  Inspected. — Jurisdiction  is  hereby  conferred 
upon  the  Corporation  Commission  to  inspect  all  oils  and  liquids 
the  product  of  petroleum  or  other  bituminous  substances  or 
into  which  the  product  of  petroleum  enters,  by  whatever  name 
called,  which  may  be  or  can  be  used  for  illuminating,  heating, 
or  power  purposes,  manufactured  in  this  State  or  brought  into 
it,  before  the  same  are  consumed,  used,  sold  or  offered  to  be 
sold  or  disposed  of  to  merchants,  consumers,  or  other  persons 
within  this  State,  and  the  Corporation  Commission  is  hereby 
authorized  to  appoint,  with  the  approval  of  the  Governor,  oil 
inspectors,  who  shall  perform  the  duties  now  prescribed  by 
Chapter  96,  Session  Laws,  1915,  and  to  perform  such  other 

61 


G2  OKLAHOMA  OIL  AND  GAS  LAWS 

duties  as  may  be  required  by  general  rules  and  regulations  of 
the  Corporation  Commission.1 

(S.  L.  1917,  p.  886,  Sec.  4.)     This  section  amends  Sec.  1,  Ch. 
96,  S.  L.  1915,  which  amended  Sec.  4332,  Rev.  Laws  1910. 

§  88.  Terms  Defined. — The  word  "manufacture"  as  used 
herein  shall  mean  persons  or  corporations  engaged  in  the  dis- 
tillation of  petroleum  by  the  usual  process,  and  the  word 
"person"  as  used  herein  shall  mean  and  include  all  persons, 
groups  of  persons,  firms  and  corporations,  whether  acting  as 
owner,  bailee  or  agent. 

(Sec.  4333,  Rev.  Laws  1910.) 

§  89.  Compensation  and  Duties  of  Inspectors. — The  Chief  Oil 
and  Gas  Conservation  Agent  of  the  Corporation  Commission 
shall  be  ex-officio  gauger  of  liquids  used  for  illumination,  heat- 
ing or  power  purposes,  and  shall  be  designated  as  State  Oil 
Inspector.  The  Corporation  Commission  shall  appoint  and  as- 
sign for  duty  deputy  oil  inspectors  at  any  points  where  there 
are  located  tank  stations,  or  refineries,  or  at  any  point  where 
in  the  judgment  of  said  Commission  an  inspector  is  needed; 
provided,  that  said  deputy  shall  not  be  an  agent  or  employee 
of  any  oil  company  or  refinery  or  in  any  manner  interested  in 
the  sale  of  oil  or  any  of  its  refined  products;  and  provided, 
further,  that  oils,  gasoline  or  other  products  of  crude  oil  shall 
be  inspected  when  practicable  in  the  county  where  sold.  Each 
deputy  inspector  may  retain  eighty-five  per  cent  (85%)  of  the 
fees  collected  by  him,  until  the  amount  so  retained  by  him  shall 
reach  one  hundred  and  fifty  dollars  ($150.00),  and  twenty-five 
per  cent  (25%)  of  the  fees  collected  by  him  thereafter  until 
the  amount  so  retained  by  him  shall  be  two  hundred  dollars 
($200.00)  and  all  balance  thereof  shall  be  remitted  by  him  to 
the  State  Oil  Inspector,  with  a  full  statement  of  the  number 


1  Sections  4334,  4336,  4337,  4343,  4344,  4353,  4354,  4355  and  4356,  Rev. 
Laws  of  1910,  have  apparently  been  changed,  modified  or  amended, 
either  by  subsequent  acts  of  the  legislature,  or  by  the  rules  and  regu- 
lations of  the  Corporation  Commission  for  the  inspection  of  oils. 
Therefore,  said  sections  have  been  omitted  so  as  to  avoid  confusion. 


INSPECTION  LAWS  63 

of  gallons  of  burning  oil,  or  kerosene,  and  gasoline  inspected, 
the  amount  of  fees  collected,  the  amount  retained  and  the 
amount  remitted  therewith ;  provided,  that  in  no  case  shall  the 
fees  so  retained  exceed  one  hundred  and  fifty  dollars  ($150.00) 
or  two  hundred  dollars  ($200.00)  for  each  inspector  for  any 
one  month,  as  hereinbefore  specified.  Such  deputy  must  be 
empowered  to  perform  the  duties  of  inspector  and  shall  be 
liable  for  such  penalties  as  may  be  prescribed  by  law.  The 
Corporation  Commission  shall  have  the  power  to  remove  any 
or  all  of  said  deputies  at  will  and  appoint  other  inspectors. 
The  various  deputies  provided  for  herein  shall,  at  the  expense 
of  the  State,  be  provided  with  proper  instruments,  stencils, 
letters  and  brands  necessary  for  them  to  use  in  the  performance 
of  their  duties.  Every  person  appointed  State  inspector  or 
deputy  shall,  before  he  enters  upon  the  duties  of  his  office, 
take  the  constitutional  oath  of  office.  It  shall  be  the  duty  of 
each  and  every  inspector  or  deputy  inspector  to  accurately 
stencil  the  exact  gravity  of  the  burning  oil,  or  kerosene,  and 
gasoline  inspected  by  him  in  plain  legible  characters  upon  the 
container  thereof. 

(S.  L.  1919,  p.  276,  Sec.  1.)     This  section  amends  Sec.  2,  Ch. 
96,  S.  L.  1915,  which  amended  Sec.  4335,  Rev.  Laws  1910. 

§  90.  Inspectors  to  Follow  Rules  of  Corporation  Commission. 
— The  Corporation  Commission  shall  have  the  power  to  regu- 
late the  test  and  promulgate  rules  as  they  see  fit,  from  time 
to  time.  It  shall  be  the  duty  of  the  inspectors  to  follow  the 
rules  laid  down  by  the  Corporation  Commission  in  the  test 
prescribed  by  them. 

(S.  L.  1919,  p.  276,  Sec.  2.) 

§  91.  Penalty  for  Sale  of  Inferior  Products. — Any  person  who 
shall  sell,  offer  for  sale,  or  in  any  way  dispose  of  any  petro- 
leum, oil,  gasoline  or  any  other  product  of  petroleum  without 
the  same  first  having  been  duly  inspected  according  to  law,  or 
if  any  such  person  shall  sell,  offer  for  sale,  or  in  any  way  dis- 
pose of  any  of  the  above  named  oils  or  liquids  when  the  same 


64  OKLAHOMA  OIL  AND  GAS  LAWS 

shall  have  been  rejected  by  any  legal  inspector  of  oils,  such 
person  shall  be  liable  to  a  fine  of  not  to  exceed  five  hundred 
dollars  ($500.00)  for  each  offense,  which  fine  may  be  collected 
by  suit  in  any  court  of  competent  jurisdiction  instituted  on 
behalf  of  the  State  by  the  Attorney  General  or  by  any  County 
Attorney. 

(S.  L.  1919,  p.  277,  Sec.  3;   amending  Sec.  4340,  Rev.  Laws, 
1910.) 

§  92.  Inspection,  How  Made. — Oils  or  gasoline  or  any  of  the 
products  of  crude  oil  shall  not  be  inspected  by  sample,  but  the 
inspection  shall  be  made  from,  the  tank  car,  can  or  other  con- 
tainer from  which  the  product  is  sold  or  delivered  and  shall 
be  made  by  the  inspector  at  the  point  where  the  product  is 
located;  provided,  that  nothing  in  this  section  shall  prevent 
the  sending  of  samples  to  the  State  Oil  Inspector,  or  to  the 
State  Chemist  for  inspection  to  determine  the  correctness  of 
any  inspection  heretofore  or  hereafter,  made  by  any  oil  in- 
spector of  the  State;  provided,  further,  that  if  the  attendance 
of  an  inspector  cannot  be  obtained  prior  to  the  accrual  of  any 
demurrage  upon  any  tank  car  in  which  said  oils  or  gasoline  are 
shipped,  then  a  fair  sample  may  be  taken  and  the  car  emptied 
and  an  inspection  of  such  sample  shall  be  considered  an  inspec- 
tion of  the  contents  of  said  car. 
(S.  L.  1919,  p.  277,  Sec.  4.) 

§  93.  Additional  Rules  and  Regulations. — The  Corporation 
Commission  is  hereby  empowered  to  prescribe  such  additional 
rules,  regulations  and  requirements  as  may  be  necessary  for 
the  proper  inspection  of  oils,  gasoline  or  any  of  the  products 
of  crude  oil  mentioned  in  the  laws  relating  to  inspection  and 
shall  have  the  same,  or  similar  powers  in  reference  thereto  as 
provided  by  Chapters  25  and  197,  Session  Laws  1915,  relat- 
ing to  the  conservation  of  crude  oil  and  natural  gas,  and  the 
same  procedure,  method  of  hearing  and  trial,  right  to  punish 
for  contempt,  and  right  to  appeal  to  Supreme  Court  shall  apply 


INSPECTION  LAWS  65 

hereto,  as  apply  and  are  provided  for  in  said  Chapters  25  and 
197,  Session  Laws  1915. 

(S.  L.  1919.  p.  277,  Sec.  5.) 

§  94.  Fees  for  Inspection. — That  section  4342  of  the  Revised 
Laws  of  the  State  of  Oklahoma,  1910,  is  hereby  amended  to 
read  as  follows : 

'  'The  inspector  and  his  deputies  shall  charge  and  receive  for 
inspecting  oils  and  gasoline  in  quantities  in  bulk  four  cents 
(4c)  per  barrel  and  fifty  gallons  shall  constitute  a  barrel.  If 
inspected  in  barrels  the  inspector  shall  charge  and  receive  five 
cents  per  barrel  for  inspecting  in  lots  of  fifty  barrels  or  more, 
and  ten  cents  per  barrel  for  inspecting  in  lots  of  less  than  fifty 
barrels,  at  one  time,  which  shall  be  paid  by  the  party  owning 
said  oil  or  having  the  same  in  his  possession  at  the  time  of  the 
inspection.  Oils  so  inspected  shall  be  taken  by  the  inspector 
or  his  deputy  directly  from  the  original  package  or  container; 
provided,  that  in  no  case  shall  the  retail  dealer  or  consumer  be 
liable  to  the  manufacturers  or  wholesale  dealer  for  fees  paid 
for  inspection  of  oils  while  in  the  possession  of  a  manufacturer 
or  wholesale  dealer  or  one  of  their  agents." 
(S.  L.  1915,  p.  151,  Sec.  3.) 

§  95.  False  Test,  Penalty.— That  section  4348  of  the  Revised 
Laws  of  the  State  of  Oklahoma,  1910,  is  hereby  amended  to 
read  as  follows: 

"Any  inspector  of  oil  who  shall  wilfully  or  negligently  make 
any  false  grade,  test  or  brand  of  any  oils  and  liquids  or  who 
shall  knowingly  or  negligently  fail  to  make  such  inspection, 
test,  stencils,  or  brand,  as  herein  provided  for  shall  be  guilty 
of  a  misdemeanor,  and  upon  conviction  thereof  shall  be  pun- 
ished by  a  fine  of  not  less  than  one  hundred  ($100.00)  dollars 
and  shall  immediately  be  removed  from  office." 
(S.  L.  1915,  p.  151,  Sec.  4). 


66  OKLAHOMA  On,  AND  GAS  LAWS 

§  96.  Oil  Condemned  May  Be  Used  for  What  Purposes. — Use 

may  be  made  of  any  of  said  oils,  even  though  tested  and  found 
to  flash  at  a  temperature  of  less  than  one  hundred  and  fifteen 
degrees,  as  hereinbefore  provided,  for  consumption  in  gas 
plants,  either  portable  or  stationary,  when  said  gas  is  conveyed 
through  pipes  and  burned  through  gas  burners  like  ordinary 
coal  gas,  and  may  also  be  used  in  the  production  of  steam,  in 
smelting  or  refining  metals,  or  in  forges  or  furnaces,  or  other 
mechanical  use  than  heating  or  illuminating  residences,  busi- 
ness houses  or  other  structures,  and  shall  not  otherwise  be  sold 
or  used. 

(Sec.  4338,  Rev.  Laws  1910.) 

§  97.  Sale  of  Uninspected  Oils. — If  any  person  in  this  State 
shall  use,  sell  or  dispose  of  to  merchants,  consumers  or  any 
other  person  or  persons  within  this  State,  any  of  the  oils  or 
fluids  specified  in  the  first  section  of  this  article,  without  the 
same  having  been  first  inspected  by  an  authorized  inspector  of 
this  State,  and  the  barrels,  casks  or  packages  containing  the 
same  branded  by  him  as  herein  provided,  said  person  so  offend- 
ing shall  be  punished  by  a  fine  not  exceeding  one  hundred  dol- 
lars for  each  barrel,  cask  or  package  of  oils  or  fluids  aforesaid 
so  used  by,  sold  or  offered  for  sale  to  merchants,  consumers  or 
any  other  person  or  persons  within  this  State. 

(Sec.  4339,   Rev.   Laws   1910.)     Richardson-Gay  Oil  Co.   r. 
Ashton,  17  Okla.  401,  87  Pac.  662. 

§  98.  Penalty  for  Hindering  Inspection. — Any  dealer  in  or 
manufacturer  or  other  person  in  possession  of  oils  or  fluids 
specified  in  the  first  section  of  this  article  who  shall  refuse  to 
admit  an  inspector  or  his  deputy  upon  his  premises,  so  far  as 
it  may  be  necessary  for  the  performance  of  his  duties,  or  shall 
obstruct  an  inspector  or  his  deputy  in  the  performance  of  his 
duties,  shall,  for  each  refusal  to  admit  on  his  premises  or  ob- 
struction offered  to  inspection,  be  fined  for  each  offense  not  to 
exceed  one  hundred  dollars. 

(Sec.  4341,  Rev.  Laws  1910.) 


INSPECTION'  LAWS  67 

§  99.  Law  Not  to  Apply,  When. — The  provisions  of  this  law 
shall  not  apply  to  oils  or  fluids  brought  into  this  State  in  transit 
for  shipment  to  and  consumption  in  other  states  or  territories. 
(Sec.  4345.  Rev.  Laws  1910.) 

§  100.  Failure  to  Erase  Marks  or  Brands. — If  any  person 
shall  refill,  buy  or  receive,  or  shall  sell  or  deliver  any  empty 
coal  oil  barrel  or  other  receptacle  used  for  handling  such  oils, 
without  first  erasing  all  marks  or  brands  now  required  by  law 
to  be  marked  or  branded  on  a  barrel  by  an  inspector,  he  shall 
be  guilty  of  a  misdemeanor;  and  for  each  barrel  or  other  re- 
ceptacle so  filled  with  oil,  sold  and  delivered,  or  bought  and 
received,  shall  be  fined  not  to  exceed  five  hundred  dollars. 
(Sec.  4346,  Rev.  Laws  1910.) 

§  101.  Misconduct  of  Inspector. — If  any  inspector  shall  deal 
in  or  purchase  otherwise  than  for  his  own  use,  any  article  of 
which  he  is  appointed  inspector,  or  be  directly  or  indirectly 
interested  in  the  purchase  of  any  such  article  when  condemned, 
he  shall  be  fined  not  exceeding  ten  dollars  for  every  barrel, 
cask  or  package  so  bought  or  dealt  in  by  him,  and  if  any  in- 
spector shall  receive  or  accept  any  fee  or  other  compensation 
for  inspecting  oils  without  an  actual  inspection  of  said  oils, 
he  shall  be  fined  not  to  exceed  one  hundred  dollars  for  each 
offense  and  shall  be  removed  from  office. 
(Sec.  4347,  Rev.  Laws  1910.) 

§  102.  Alteration  of  Inspector 's  Marks,  Penalty. — If  any  per- 
son shall  wilfully  use  or  imitate  the  brand  or  mark  of  an  in- 
spector on  any  cask,  barrel,  reservoir  or  other  vessel,  or  shall 
put  any  oils  as  provided  by  the  first  section  of  this  article  into 
any  cask,  barrel,  reservoir  or  other  vessel  which  has  been  previ- 
ously branded  by  an  inspector,  without  canceling  the  original 
brand  or  mark,  or  shall  alter,  erase  or  obliterate  any  brand 
or  mark  made  by  any  inspector  on  any  inspected  cask,  barrel, 
reservoir  or  other  vessel  which  contains  any  oil  which  has  been 
inspected,  or  shall  mark  or  brand  with  the  mark  or  brand  of 


68  OKLAHOMA  On.  AND  GAS  LAWS 

any  inspector,  or  with  any  imitation  thereof,  any  oils  subject 
to  inspection  under  this  article,  which  have  not  been  inspected, 
and  shall  sell  or  offer  to  sell  or  otherwise  dispose  of  the  same, 
he  shall,  for  every  such  offense,  be  fined  in  any  sum  not  to 
exceed  five  hundred  dollars. 

(Sec.  4349,  Rev.  Laws  1910.) 

§  103.  Unlawful  Sale  of  Oil. — No  person  who  shall  bring  into 
this  State  any  petroleum  oil  or  product  thereof,  as  provided 
by  the  first  section  of  this  article,  shall  empty  the  same  out  of 
the  original  packages  in  which  it  is  brought  into  this  State 
until  the  same  has  been  inspected.  Any  person  violating  the 
provisions  of  this  section  shall  be  deemed  guilty  of  a  misde- 
meanor, and  upon  conviction  shall  be  fined  in  any  sum  not 
exceeding  five  hundred  dollars,  and  any  such  person  who  shall 
bring  into  this  State  any  petroleum  oil  or  any  product  thereof, 
as  provided  by  the  first  section  of  this  article,  who  shall  sell 
or  otherwise  dispose  of  the  same  after  the  same  have  been  in- 
spected and  found  to  be  below  test  as  provided  herein,  shall  be 
deemed  guilty  of  a  misdemeanor,  and  upon  conviction  thereof 
shall  be  fined  in  any  sum  not  less  than  one  hundred  dollars 
nor  more  than  five  hundred  dollars. 
(Sec.  4350,  Rev.  Laws  1910.) 

§  104.  Civil  Liability  for  Unlawful  Sale. — If  any  person  shall 
sell,  offer  for  sale,  or  in  any  way  dispose  of  any  petroleum  oil 
or  product  thereof,  as  described  by  the  first  section  of  this 
article,  without  the  same  having  been  first  duly  inspected  ac- 
cording to  law,  or  if  any  such  person  shall  sell,  offer  for  sale, 
or  in  any  way  dispose  of  any  of  the  above-named  oils  or  liquids 
when  the  same  shall  have  been  rejected  by  any  legal  inspector 
of  oils,  such  person  shall  be  liable  for  any  damages  or  any 
injury  which  may  have  been  caused  either  directly  or  indirectly 
by  the  ignition  or  combustion  of  said  oils,  and  when  an  injury 
has  been  caused  by  said  oils,  sold  or  disposed  of  as  above  speci- 
fied, the  burden  of  proof  shall  be  placed  upon  the  person  sell- 


INSPECTION  LAWS  69 

ing  or  disposing  of  the  same  as  above  specified  to  show  that 
the  injury  was  not  caused  by  the  poor  quality  of  said  oils, 
(Sec.  4351,  Rev.  Laws  1910.) 

§  105.  Adulteration. — No  person  shall  adulterate  with  par- 
affm  or  other  substance,  for  the  purpose  of  sale  or  for  use,  any 
of  the  illuminating  oils  specified  in  this  article,  in  such  manner 
as  to  render  them  dangerous  for  use,  nor  shall  any  person  sell 
or  offer  to  sell  or  knowingly  use  for  illuminating  purposes  any 
such  adulterated  oil.  Any  person  or  persons  violating  the  pro- 
visions of  this  section  shall  be  deemed  guilty  of  a  misdemeanor, 
and  shall  upon  conviction  thereof  be  punished  by  a  fine  of  not 
less  than  one  hundred  dollars  nor  more  than  three  hundred 
dollars. 

(Sec.  4352,  Rev.  Laws  1910.) 

§  106.  Recovery  of  Fines  and  Penalties. — When  any  fine,  pen- 
alty or  costs  are  assessed  under  the  provisions  of  this  article, 
the  party  against  whom  such  fines,  penalties  or  costs  are 
assessed,  if  the  same  shall  not  be  paid,  shall  stand  committed 
until  such  fines,  penalties  and  costs  are  paid;  provided,  how- 
ever, that  all  fines,  penalties  or  costs  provided  for  by  any  sec- 
tion of  this  article,  may,  at  the  option  of  the  prosecutor,  be 
recovered  by  a  civil  action  in  the  name  of  the  State,  in  any 
court  having  jurisdiction  of  the  amount,  and  the  rules  of  evi- 
dence applicable  to  civil  cases  shall  be  applied  thereto,  and 
the  jury  (or  the  court,  in  case  of  trial  without  a  jury)  shall 
fix  the  amount  of  recovery  within  the  limits  of  the  fines  fixed 
for  each  offense,  respectively,  with  costs. 
(Sec.  4357,  Rev.  Laws  1910.) 

§107.  Liability   of  Manufacturers  and  Wholesalers.— All 

manufacturers  and  wholesale  dealers  shall  be  liable  to  retail 
dealers  and  all  other  persons  for  damages  of  every  kind  and 
nature,  including  fines,  penalties  and  civil  damages  paid  by 
such  retail  dealers  and  other  persons  because  of  the  inferior 
quality  of  oil  sold  by  said  manufacturers  or  wholesale  dealers 


70 


OKLAHOMA  OIL  AND  GAS  LAWS 


to  said  retail  dealers  and  other  persons,  and  all  contracts  for 
the  sale  or  purchase  price  of  oils  sold  in  violation  of  the  pro- 
visions of  this  article  shall  be  void. 
(Sec.  4358,  Rev.  Laws  1910.) 

§  108.  Prosecutions. — It  shall  be  the  duty  of  the  county  at- 
torney or  the  attorney  general  to  prosecute  violations  of  this 
article  and  in  addition  to  the  penalties  herein  provided  for 
there  shall  be  taxed  as  a  part  of  the  costs  of  said  case  and  col- 
lected in  the  same  manner  as  costs  in  said  case  an  attorney's 
fee  of  fifteen  dollars  in  county  and  justice  courts  and  thirty 
dollars  in  district  and  superior  courts,  which  said  sum  shall  be 
paid  to  the  county  attorney  or  attorney  general  in  addition  to 
the  salaries  otherwise  provided  for;  provided,  that  in  no  case 
shall  the  State  or  any  county  be  liable  for  such  attorney's  fee. 
(Sec.  4359,  Rev.  Laws  1910.) 


BEFORE  THE  CORPORATION  COMMISSION  OF 
OKLAHOMA. 


IN  BE  Proposed  Order  No.  166  of  the  Corporation  ' 
Commission  of  the  State  of  Oklahoma  for  the  pro- 
mulgation of  general  rules  and  regulations  for  the 
inspection  of  all  oils  and  liquids,  the  products  of 
petroleum  or  other  bituminous  substances,  or  into 
which  the  product  of  petroleum  enters,  by  what- 
ever name  called,  which  may  or  can  be  used  for 
illuminating,  heating  or  power  purposes,  manu- 
factured in  this  State  or  brought  into  it  for  the 
purpose  of  being  sold  or  disposed  of  to  merchants, 
consumers  or  other  persons  within  the  State,  as 
provided  by  Section  4,  Chapter  207,  Session  Laws, 
1917,  and  Chapter  197,  Session  Laws,  1919,  and  all 
other  laws  or  acts  pertaining  thereto. 


Cause  No.  3722 
Order  No.  1575 


ORDER. 

In  pursuance  to  Proposed  Order  No.  166,  regularly  published  as  pro- 
vided by  law,  hearing  was  held  before  the  Corporation  Commission. 
June  9,  1919,  to  consider  the  promulgation  of  rules,  regulations  and 
requirements  governing  the  inspection  of  oils  and  liquids,  the  products 


INSPECTION  LAWS  71 

of  petroleum,  or  other  bituminous  substances,  or  into  which  the  prod- 
ucts of  petroleum  enters,  by  whatever  name  called,  which  may  be 
used  for  illuminating,  heating  or  other  power  purposes,  manufactured 
in  this  State,  or  brought  into  it  for  the  purpose  of  being  sold  or  dis- 
posed of  to  merchants,  consumers,  or  other  persons  within  this  State, 
as  provided  by  Section  4,  Ch.  207,  Sessions  Laws,  1917,  and  Chapter 
197,  Session  Laws,  1919,  and  all  other  laws  pertaining  thereto. 

Section  4,  H.  B.  136,  Session  Laws,  1917,  effective  February  16,  1917, 
amending  Section  4332,  R.  L.  1910,  confers  jurisdiction  upon  the  Cor- 
poration Commission  to  inspect  liquid  products.  This  Section  reads 
as  follows: 

"Jurisdiction  to  Inspect  Liquid  Products  Conferred  on  Corporation 
Commission.  Jurisdiction  is  hereby  conferred  upon  the  Corporation 
Commission  to  inspect  all  oils  and  liquids,  the  product  of  petroleum 
or  other  bituminous  substances  or  into  which  the  product  of  petroleum 
enters  by  whatever  name  called,  which  may  or  can  be  used  for  Illu- 
minating, heating  or  power  purposes  manufactured  in  this  State  or 
brought  into  it,  before  the  same  are  consumed,  used,  sold  or  offered  to 
be  sold  or  disposed  of  to  merchants,  consumers,  or  other  persons  within 
this  State,  and  the  Corporation  Commission  is  hereby  authorized  to 
appoint  oil  inspectors  who  shall  perform  the  duties  now  prescribed  by 
Chapter  96,  Session  Laws,  1915,  (following  sections  herein)  and  to 
perform  such  other  duties  as  may  be  required  by  general  rules  and 
regulations  of  the  Corporation  Commission." 

Section  1,  Chapter  197,  Session  Laws,  1919,  provides: 

"The  Chief  Oil  and  Gas  Conservation  Agent  of  the  Corporation  Com- 
mission shall  be  ex-offlcio  gauger  of  liquids  used  for  illumination,  heat- 
ing or  power  purposes,  and  shall  be  designated  as  State  Oil  Inspector. 
The  Corporation  Commission  shall  appoint  and  assign  for  duty  deputy 
oil  inspectors  at  any  points  where  there  are  located  tank  stations,  or 
refineries,  or  at  any  point  where  in  the  judgment  of  said  Commission 
an  Inspector  is  needed ;  Provided,  that  said  deputy  shall  not  be  an  agent 
or  employee  of  any  oil  company  or  refinery  or  in  any  manner 
Interested  in  the  sale  of  oil  or  any  of  its  refined  products;  and  pro- 
vided, further,  that  oils,  gasoline  or  other  products  of  crude  oil  shall 
be  inspected  when  practicable  in  the  county  where  Bold.  Each  deputy 
inspector  may  retain  eighty-five  per  cent  (85%)  of  the  fees  collected 
by  him  until  the  amount  so  retained  by  him  shall  reach  One  Hundred 
and  Fifty  Dollars  ($150.00)  and  twenty-five  per  cent  (25%)  of  the  fees 
collected  by  him  thereafter  until  the  amount  so  retained  by  him  shall 
be  Two  Hundred  Dollars  ($200.00)  and  all  balance  thereof  shall  b« 


72  OKLAHOMA  OIL  AND  GAS  LAWS 

remitted  by  him  to  the  State  Oil  Inspector,  with  a  full  statement  of  the 
number  of  gallons  of  burning  oil,  or  kerosene  and  gasoline  inspected, 
the  amount  of  fees  collected,  the  amount  retained  and  the  amount 
remitted  therewith;  provided,  that  Is  no  case  shall  the  fees  so 
retained  exceed  One  Hundred  and  Fifty  Dollars  ($150.00)  or  Two  Hun- 
dred Dollars  ($200.00)  for  each  inspector  for  any  one  month,  as  herein- 
before specified.  Such  deputy  must  be  empowered  to  perform  the 
duties  of  inspector  and  shall  be  liable  for  such  penalties  as  may  be  pre- 
scribed by  law.  The  Corporation  Commission  shall  have  the  power 
to  remove  any  or  all  of  said  deputies  at  will  and  appoint  other 
inspectors.  The  various  deputies  provided  for  herein  shall,  at  the 
expense  of  the  state,  be  provided  with  proper  instruments,  stencils, 
letters  and  brands  necessary  for  them  to  use  in  the  performance  of 
their  duties.  Every  person  appointed  State  Inspector  or  deputy  shall, 
before  he  enters  upon  the  duties  of  his  office,  take  the  Constitutional 
oath  of  office.  It  shall  be  the  duty  of  each  and  every  inspector  or 
deputy  inspector  to  accurately  stencil  the  exact  gravity  of  the  burning 
oil,  or  kerosene,  and  gasoline  inspected  by  him  in  plain  legible  char- 
acters upon  the  container  thereof." 

Section  2,  Chapter  197,  Session  Laws,  1919,  provides  in  part  as 
follows: 

"The  Corporation  Commission  shall  have  the  power  to  regulate  the 
test  and  promulgate  rules  as  they  see  fit,  from  time  to  time." 

Pursuant  to  the  above  hearing  and  by  virtue  of  the  above  laws,  the 
Corporation  Commission  promulgates  the  following  rules  and 
regulations : 

1.  Inspectors  shall  reside  within  the  district  for  which  appointed. 

2.  Inspectors  shall  make  no  inspection  outside  of  the  boundaries  of 
their    respective    districts,    except    by   direction    of   the    Corporation 
Commission. 

3.  Inspectors  shall  devote  to  the  duties  of  the  office  of  oil  inspector 
all  time  necessary  to  the  proper  and  thorough  performance  of  their 
duties  prescribed  by  the  law  and  these  rules. 

4.  Each  inspector  shall  keep  vigilant  watch  on  all  selling  stations, 
either  wholesale  or  retail,  within  the  inspection  district.  Where  brands 
or  labels  are  not  displayed  as  prescribed  herein,  all  oils  not  so  labelled 
shall  be  inspected  and  fees  charged  for  the  same  on  the  assumption 
that  they  have  not  been  previously  inspected. 

5.  Inspectors  shall  have  authority  to  make  inspections  where  oils 
are  labelled  as  provided  herein  as  well  as  where  labels  are  not  posted, 


INSPECTION  LAWS  73 

but,  where  such  inspection  of  oils  represented  as  of  a  particular  grade 
shows  such  representation  to  be  correct,  no  fee  for  such  reinspectlon 
shall  be  collected.  If  such  reinspectlon  proves  oils  to  have  been 
improperly  labelled  and  to  be  in  fact  "inferior"  in  grade  as  labelled,  fee 
for  such  inspection  shall  be  collected  and  the  inspector  shall  notify  the 
Corporation  Commission  of  such  violation  of  the  law. 

6.  Any  deputy  inspector,  when  in  doubt  as  to  the  correctness  of  any 
label  showing  the  result  of  the  distillation  test  as  hereinafter  provided 
by  these  rules,  shall  procure  sample  of  oils  so  labelled  and  send  same 
to  the  State  Oil  Inspector.     The  State  Oil  Inspector,  upon  receipt  of 
sample  shall  further  inspect  and  analyze,  or  cause  to  be  inspected  and 
analyzed,  said  sample  and,  if  said  analysis  shows  a  variance  from 
analysis   shown  by  said    label,    such    matter    shall  be  immediately 
reported  by  the  State  Oil  Inspector  to  the  Corporation  Commission. 

7.  Inspectors  shall  require  dealers  to  show  records  of  sales  at  any 
time  and  where  record  of  total  sales  does  not  agree  with  record  of 
total  oils  inspected,  the  fact  shall  be  reported  to  the  Corporation  Com- 
mission for  further  investigation  and  action. 

8.  Inspectors  shall  make  careful  study  of  all  provisions  of  the  law 
relating  to  inspection  of  oils  and  shall  make  strict  enforcement  of  all 
requirements  therein  applying  to  dealers  or  to  the  public,  and  shall 
make   strict   observance    of    all    requirements     therein    applying   to 
inspectors. 

9.  "No  inspector  shall  deal  in  or  purchase,  otherwise  than  for  his 
own  use,  any  article  of  which  he  is  appointed  inspector,  or  be  directly 
or  indirectly  interested  in  the  purchase  of  any  such  article  when  con- 
demned. In  event  any  inspector  shall  violate  the  provisions  of  this 
Rule  he  shall  be  fined  not  to  exceed  Ten  Dollars  ($10.00)   for  every 
barrel,  cask  or  package  so  bought  or  dealt  in  by  him;   and,  if  any 
Inspector  shall  receive  or  accept  any  fee  or  other  compensation  for 
inspecting  oils  without  an  actual  inspection  of  said  oils,  he  shall  be 
fined   not   to   exceed   One   Hundred    Dollars    ($100.00)    and   shall   be 
removed  from  office." 

10.  The  word  "manufacturer"  as   used   in  this  Order  shall  mean 
persons  or  corporations  engaged  in  the  distillation  of  crude  petroleum 
or  by  compressor,  absorption  or  cracking  process,  and  the  word  "per- 
son" as  used  herein  shall  mean  and  Include  all  persons,  groups  of 
persons,  firms  and  corporations,  whether  acting  as  owner,  bailee  or 
agent 

11.  Any  dealer,  agent  or  vendor  of  any  of  the  oils  or  fluids  men- 
tioned in  these  rules  shall  not  be  permitted  to  draw  off  the  flame  or 


74  OKLAHOMA  OIL  AND  GAS  LAWS 

permit  to  be  drawn  from  a  car,  tank  or  other  vessel  into  their  receiv- 
ing reservoirs  or  other  receptacle,  or  offer  the  same  for  sale  from  any 
barrel,  cask  or  package  before  the  same  has  been  first  inspected  by  the 
State  Inspector  or  his  deputy  inspector  and  an  official  certificate  or 
car  tank  seal  showing  that  same  has  been  inspected,  issued  to  the 
wholesale  dealer  or  agent  authorizing  the  same  to  be  drawn  from  the 
said  tank  car,  which  certificate  shall  designate  the  number  of  the  car 
tank;  provided,  however,  that,  if  the  contents  of  any  car  of  petroleum 
products  shall  not  have  been  inspected  within  18  hours  after  notifi- 
cation of  receipt  and  request  for  inspection  as  hereinbefore  provided, 
the  same  may  be  drawn  off  and  stored  in  a  reservoir,  warehouse  or 
tank  and  held  for  inspection. 

12.  All  oils  subject  to  inspection  shall  be  inspected  before  sold  or 
offered  for  sale  to  consumers.    This  means  that,  if  not  inspected  in  car 
in  which  it  is  received  at  destination  within  the  inspection  district, 
such  oils  shall  be  inspected  in  the  possession  of  the  dealer,  either 
wholesale  or  retail,  in  whose  possession  the  same  may  be  when  dis- 
covered, and  all  inspection  fees  shall  be  collected  at  the  completion 
of  said  inspection. 

13.  It  shall  be  the  duty  of  each  and  every  inspector,  or  deputy  in- 
spector to  accurately  mark  the  exact  gravity  of  all  oils  inspected  by 
him  in  plain,  legible  characters  upon  the  container  thereof. 

14.  No  oil  or  liquids  shall  be  sold  or  offered  for  sale  by  any  person, 
persons,  firm  or  corporation  as  high  grade  or  aero  gasoline,  gasoline, 
motor  fuel  oil  or  kerosene  which  do  not  meet  with  the  rules  and  regu- 
lations prescribed  in  this  Order. 

15.  All  oils  or  liquids  whose  analysis  show  them  to  come  within 
the  specification  required  of  oils  or  liquids  designated  by  this  Order  as 
high  grade  or  aero  gasoline,  gasoline,  or  motor  fuel  oil  shall,  before 
being  sold  or  offered  for  sale  by  any  person,  persons,  firm  or  corpora- 
tion, be  labelled.     Such  label  shall  show  the  grade  of  oils  or  liquids 
offered  for  sale  as  provided  in  specifications  governing  brands  and 
specifications  and  shall  be  displayed  where  the  same  shall  be  in  sight 
and  shall  be  of  sufficient  size  to  be  read  by  purchasers  of  said  oil  with- 
out inconvenience. 

18.  No  person  shall  adulterate  with  any  other  substance,  after  It 
has  been  inspected,  for  the  purpose  of  sale  or  for  use,  any  oils  or  liquids 
specified  in  these  rules. 

17.  No  person,  firm  or  corporation  shall  refill,  buy  or  sell  or  receive 
or  deliver  any  empty  barrel,  or  barrels  or  other  receptacle  or  other  con- 


INSPECTION  LAWS  75 

talner  used  for  handling  oils  or  liquids  without  first  erasing  all  marks 
or  brands  required  by  these  rules  to  be  marked  or  branded  on  said  bar- 
rel, barrels,  receptacles  or  containers. 

18.  To  effectively  carry  out  the  provisions  of  this  Act,  it  shall  be 
lawful  for  any  state  inspector  or  his  deputies  at  all  reasonable  times 
to  enter  into  or  upon  the  premises  of  any  manufacturer,  vendor  or 
dealer  in  any  of  said  oil  fluids  hereinbefore  mentioned,  or  in  any  other 
place  where  such  oils  or  fluids  may  be  found,  kept,  stored  or  manu- 
factured. 

19.  The  provisions  of  this  law  shall  not  apply  to  oils  and  fluids 
brought  into  this  state  in  transit  for  shipment  to  and  consumption  in 
other  states  and  territories. 

20.  All  oils  or  liquids  herein  designated  as  high  grade  aero  gaso- 
line, gasoline,  or  motor  fuel  oil,  before  being  sold  or  offered  for  sale  in 
the  State  of  Oklahoma,  shall  be  tested  by  applying  both  the  distilla- 
tion and  gravity  tests  and  the  result  of  said  tests  shall  show  on  the 
container  out  of  which  said  liquids  are  sold  or  delivered  or  offered  for 
sale  or  delivery. 

21.  All  liquids  sold  as  gasoline,  the  color  of  which  is  water  white, 
free  from  acid  and  with  not  more  than  a  trace  of  sulphur,  and  of  which 
not  more  than  5  per  cent  shall  distill  below  122  degrees  Fahrenheit, 
and  of  which  at  least  97  per  cent  shall  distill  below  350  degrees  Fahren- 
heit, shall,  in  addition  to  showing  its  actual  analysis  as  the  result  of 
both  tests,  be  labelled  "high  grade"  or  "aero"  gasoline. 

22.  (The  ruling  as  to  what  shall  constitute  gasoline  of  the  various 
grades  mentioned  herein  has  as  yet  not  been  decided  upon  by  the  Cor- 
poration Commission.    When  such  has  been  determined  due  notice  will 
be  given.) 

23.  All  oils  not  meeting  the  requirements  and  specifications  pre- 
scribed for  oils  to  be  labelled  "high  grade"  or  "aero"  gasoline  or  "gaso- 
line" shall,  in  addition  to  showing  its  actual  analysis  as  the  result  of 
both  tests,  be  labelled  "motor  fuel  oil." 

24.  The  "gravity  test"  to  be  made  on  behalf  of  the  state  shall  be 
made  by  the  State  Oil  Inspector  or  his  deputies  In  the  field. 

26.  The  "distillation  test,"  required  to  be  made  on  behalf  of  the 
State,  shall,  upon  request  of  the  Corporation  Commission,  be  made  by 
the  State  Chemist  or  such  other  chemist  as  the  Corporation  Commis- 
sion may  designate. 


76  OKLAHOMA  OIL  AND  GAS  LAWS 

26.  The  "distillation  test"  required  by  these  rules  shall  also  be  made 
by  the  refiners  and  manufacturers  of  such  oils  or  liquids  to  be  sold  or 
offered  for  sale  in  the  State  of  Oklahoma  and  the  result  of  said  test 
attached  to  the  bill  of  lading  for  each  shipment 

27.  All  refiners  or  manufacturers  of  oils  or  liquids  shall  file  with 
the  Corporation  Commission  on  or  before  the  5th  of  each  month  a  report 
or  statement  showing  all  shipments  made   of   oils   or   liquids  sold  or 
offered  for  sale  in  the  State  of  Oklahoma  during  the  previous  month, 
which  statment  shall  set  forth  in  detail. 

(a)  The  date  on  which  each  shipment  was  made. 

(b)  The  destination  of  shipment. 

(c)  The  name  of  consignee. 

(d)  The  number  of  tank  cars,  drums  or  barrels  and  amount  of  oils 
or  liquids  contained  in  each. 

Blank  forms  for  making  these  reports  will  be  furnished  by  the  Cor- 
poration Commission. 

28.  Apparatus  used  in  making  the  distillation  tests  shall  be  the 
same  as  used  by  the  Bureau  of  Mines  for  distillation  tests  for  gasoline 
and  the  test  made  and  readings  taken  as  hereinbefore  specified  for  each 
grade. 

29.  Requirements  for  kerosene  or  coal  oil  shall  be  as  follows: 

All  kerosene  or  coal  oil,  the  color  of  which  is  water  white,  free  from 
acid  and  sulphur,  with  a  specific  gravity  between  40  and  48  degrees 
Beaume,  both  inclusive,  and  which  has  a  flash  point  at  not  less  than 
120  degrees  Fahrenheit,  shall  be  known  as  "first  grade." 

All  kerosene  or  coal  oil  which  is  free  from  water,  with  a  specific 
gravity  between  40  and  48  degrees  Beaume,  both  inclusive,  and  which 
has  a  flash  point  at  not  less  than  110  degrees  Fahrenheit,  shall  be 
known  as  "second  grade." 

30.  The  tests  required  shall  be  made  with  an  apparatus  adopted  by 
The  American  Society  for  Teitlng  Materials. 

"WHEBEFOBE,  premises  considered  and  the  Commission  being  advised, 
it  Is,  therefore,  ordered  that  the  above  rules  and  regulations  be,  and  the 
same  are  hereby  declared  to  be,  effective  on  and  after  the  date  hereof. 


INSPECTION  LAWS  77 

the  Commission  reserving  the  right  to  revise  and  amend  the  same  at  its 
discretion. 

Done  in  the  regular  order  of  business  at   Oklahoma  City,  Oklahoma, 
this  the  18th  day  of  July,  1919. 

CORPORATION  COMMISSION  OP  OKLAHOMA. 

(Signed)     ART  L.  WALKER, 

Chairman. 
(Signed)     R.  E.  ECHOLS, 

Commissioner. 
(Signed)     CAMPBELL  RUSSELL, 

Commissioner. 
ATTEST: 

P.  E.  GLEJTW, 

Secretary. 


CHAPTER    XV, 

METER  REGULATIONS. 

§  109.  Gas  companies  to  use  meters. 

110.  Punishment  for  violations  of  act. 

111.  Minimum  charge  prohibited. 

112.  Penalty. 

§  109.  Gas  Companies  to  Use  Meters. — That  all  persons,  firms, 
corporations  or  other  business  organizations  engaged  in  the 
business  of  furnishing  natural  gas  in  municipalities  in  this 
state,  to  the  inhabitants  thereof,  shall  do  so  through  standard 
meters  at  meter  rates ;  provided,  that  this  Act  shall  only  apply 
to  towns  where  the  population  exceeds  five  hundred,  and  shall 
not  prohibit  the  sale  of  gas  at  a  flat  rate  to  federal,  state  or 
municipal^  owned  buildings,  institutions  or  plants;  provided 
further,  that  this  Act  shall  not  abrogate  any  existing  contract, 
or  effect  or  change  the  terms  or  conditions  of  any  franchise 
granted  by  any  municipal  corporation  prior  to,  and  in  effect 
April  28th,  1913. 

(S.  L.  1915,  p.  333,  Sec.  1;  amending  S.  L.  1913,  p.  309,  Sec. 

1.)  Pawhuska  Oil  &  Gas  Co.  v.  City  of  Pawhuska,  64  Okla. 

214,  166  Pac.  1058,  148  Pac.  118. 

§  110.  Punishment  for  Violations  of  Act. — Any  person,  firm, 
corporation  or  other  business  organization  who  shall  violate 
any  of  the  provisions  of  this  Act  shall  be  guilty  of  a  misde- 
meanor and,  upon  conviction,  shall  be  fined  not  less  than  five 
dollars  nor  more  than  twenty-five  dollars,  and  each  day  of  such 
violation  shall  be  deemed  a  separate  offense. 
(S.  L.  1913,  p.  309,  Sec.  2.) 

§  111.  Minimum  Charge  Prohibited. — That  all  persons,  firms, 
corporations  or  other  business  organizations  engaged  in  the 
business  of  furnishing  gas  in  this  State  to  the  inhabitants 
thereof  shall  be  prohibited  from  making  and  maintaining  a 

78 


METEK  REGULATIONS  79 

fixed  minimum  charge  for  gas,  or  for  the  use  of  gas  meter,  or 
for  the  inspection  of  any  gas  meter  used  on  the  premises  of 
any  consumer;  and  providing  that  the  consumer  shall  be 
charged  only  for  the  number  of  cubic  feet  of  gas  used  or  con- 
sumed as  registered  by  gas  meter. 
(S.  L.  1917,  p.  194,  Sec.  1.) 

§  112.  Penalty. — Any  person,  firm,  corporation  or  other  busi- 
ness organization,  who  shall  violate  any  of  the  provisions  of 
this  Act,  shall  be  guilty  of  a  misdemeanor  and,  upon  conviction, 
shall  be  fined  not  less  than  twenty-five  ($25.00)  dollars,  nor 
more  than  one  hundred  ($100.00)  dollars,  for  each  and  every 
separate  offense. 

(S.  L.  1917,  p.  195,  Sec.  2.) 

BEFORE  THE  CORPORATION  COMMISSION  OF  OKLAHOMA. 

In  Re  Proposed  Order  No.  174,  requiring  the  ] 
measurement  of  all  gas  transmitted,  distributed   ^  CAUSE  No-   43' 
and  consumed  within  the  State  of  Oklahoma. 

FINDINGS  OF  FACT,  OPINION  AND  ORDER. 

On  September  14th,  1921,  the  Commission  issued  its  Proposed  Order 
No.  174,  covering  the  measurement  of  all  gas  transmitted,  distributed 
and  consumed  within  the  State  of  Oklahoma. 

After  due  notice,  as  required  by  law,  a  hearing  was  held  at  the 
Commission's  Court  Room,  Capitol  Building,  Oklahoma  City,  on  Octo- 
ber 18th,  1921,  in  the  above  Cause.  After  an  explanation  of  the  require- 
ments of  the  Proposed  Order,  the  utilities  represented  at  the  hearing 
offered  no  objections. 

The  Commission,  in  furthering  its  campaign  on  gas  conservation, 
finds  that  a  large  quantity  of  the  gas  transmitted,  distributed  and  con- 
sumed within  the  State  is  not  measured.  Obviously,  it  is  Impossible 
for  the  Commission  to  determine  with  any  degree  of  accuracy  the 
extent  of  unnecessary  waste  in  communities  where  these  conditions 
exist. 

The  Commission  is  of  the  opinion  that  the  time  is  now  at  hand 
when  all  gas  transmitted,  distributed  and  consumed  within  the  State 
should  be  accurately  measured  at  the  various  stages  of  its  journey 
from  the  well  to  the  ultimate  consumer.  These  stages  include  the 


80  OKLAHOMA  OIL  AND  GAS  LAWS 

measurement  of  the  gas,  first,  before  it  enters  the  transmission  line; 
second,  as  it  leaves  the  transmission  line  and  enters  the  distribution 
system;  and,  third,  as  it  leaves  the  distribution  system  to  the  ulti- 
mate consume'r.  *  Also  airgaT'uaed  for  light*  heaVand  Ipower TiTconnec-' 
tion  with  its  transmission  and  distribution  should  be  accurately  meas- 
ured. This  procedure  is  necssary  In  order  that  the  Commission  may 
determine  whether  or  not  the  loss  and  unaccounted  for  gas  in  the 
various  pipe  lines  and  distributing  systems  is  reasonable  or  excessive, 
and,  if  excessive,  what  steps  are  being  taken  to  reduce  the  loss  to  a 
reasonable  amount. 

It  is  therefore  the  Order  of  the  Commission,  premises  considered, 
that  on  and  after  January  1,  1922,  all  gas  transmitted,  distributed 
and  consumed  within  the  State  of  Oklahoma  shall  be  accurately  meas- 
ured and  recorded  at  the  various  stages  of  its  journey  from  the  well 
to  the  ultimate  consumer,  as  follows: 

First:  That  all  gas  transmitted  by  pipe  line  within  the  State  of 
Oklahoma  shall  be  accurately  measured  by  approved  apparatus  before 
it  enters  the  pipe  line  and  upon  its  exit  from  the  pipe  line,  and  all  gas 
consumed  for  light,  heat  and  power  in  connection  with  its  transmis- 
sion, shall  be  accurately  measured  in  order  that  the  loss  in  trans- 
mission may  be  accurately  determined. 

Second:  That  all  gas  distributed  within  the  State  of  Oklahoma 
shall  be  accurately  measured  by  approved  apparatus  upon  its  entrance 
into  the  distribution  system  and  upon  its  exit  to  the  ultimate  con- 
sumer at  the  utilities'  service  meter,  and  all  gas  consumed  for  light, 
heat  and  power  in  connection  with  its  distribution  shall  be  accurately 
measured  in  order  that  the  loss  in  distribution  may  be  accurately 
determined. 

Third:  That  all  measurements  required  by  this  Order  shall  be 
recorded  and  the  totals  only  reported  monthly  to  the  Commission  on 
its  Forms  G  and  GPL,  "Monthly  Report  of  Revenues  and  Expenses." 
These  measurements  shall  be  reported  on  an  8  oz.  pressure  base, 
regardless  of  the  base  on  which  the  gas  is  purchased  and  sold,  except 
that  sales  to  consumers  shall  be  reported  as  billed  when  the  pressure 
at  which  the  gas  is  delivered  is  not  greater  than  8  oz. 

In  any  case  where  compliance  with  any  of  the  requirements  of  this 
Order  introduces  unusual  difficulties  such  requirement  may  be  tem- 
porarily waived  by  the  Commission  upon  application  of  the  utility. 
If,  in  such  case,  compliance  with  the  requirement  would  cost  more 


METER  REGULATIONS 


81 


than  the  results  of  such  compliance  are  worth  to  the  public  and  gas 
consumers,  it  may  be  permanently  set  aside  by  the  Commission. 

Done  at  Oklahoma  City,  Oklahoma,  this  the  5th  day  of  November, 
1921. 

CORPORATION  COMMISSION  OF  OKLAHOMA. 


(Seal) 


(Signed) 
(Signed) 
(Signed) 


ATTEST: 

(Signed)     G.  F.  SMITH, 

Secretary. 


CAMPBELL  RUSSELL, 

Chairman. 

ABT  L.  WALKEB, 

Commissioner. 

E.  R.  HUGHES, 

Commissioner. 


CHAPTER    XVI. 

GROSS  PRODUCTION  TAX. 

§  113.  Tax  on  gross  production  of  oil  or  gas. 

114.  Proceedings  and  penalty  on  delinquency. 

115.  Rebates  payable,  when. 

116.  Levy  and  sale  for  delinquent  taxes. 

117.  Purchasers  must  file  reports. 

118.  Reports  of  shippers. 

119.  Distribution  and  use  of  taxes. 

120.  Validity  of  provision. 

121.  Act  not  retroactive. 

122.  Effect  of  invalid  parts  of  act. 

123.  False  report  deemed  perjury. 

§  113.  Tax  on  Gross  Production  of  Oil  or  Gas.— That  Section 
1  of  subdivision  A,  Article  2,  Chapter  107,  Session  Laws  of 
Oklahoma,  1915,  be  and  the  same  is  hereby  amended  to  read 
as  follows: 

"Section  1.  That  Section  7464,  Revised  Laws  of  Oklahoma, 
1910,  be  amended  to  read  as  follows : 

Section  7464.  Every  person,  firm,  association  or  corporation 
engaged  in  the  mining  or  production  within  this  State  of  as- 
phalt or  of  ores  bearing  lead,  zinc,  jack,  gold,  silver  or  copper, 
or  of  petroleum  or  other  crude  oil  or  other  mineral  oil  or  of 
natural  gas,  shall  within  thirty  days  after  the  expiration  of 
the  quarter-annual  period  ending  on  the  last  day  of  March, 
A.  D.  1916,  and  of  each  quarter-annual  period  thereafter  expir- 
ing respectively,  on  the  last  day  of  June,  September,  Decem- 
ber and  March  of  each  year,  file  with  the  State  Auditor,  a  state- 
ment under  oath,  on  forms  prescribed  by  him  showing  the  loca- 
tion of  each  mine  or  oil  or  gas  well  operated  by  such  person, 
firm,  corporation  or  association  during  the  last  preceding 
quarter-annual  period ;  the  kind  of  such  mineral,  oil  or  gas  pro- 
duced ;  the  gross  amount  thereof  produced,  and  the  actual  cash 

82 


GROSS  PRODUCTION  TAX  83 

value  thereof  at  the  place  of  production;  the  amount  of  the 
royalty  payable  thereon,  if  any,  to  whom  payable  and  whether 
it  is  claimed  that  such  royalty  is  exempt  from  taxation  by  law, 
and  the  facts  on  which  such  claim  of  exemption,  if  any,  is 
based;  and  such  other  information  pertaining  thereto  as  the 
State  Auditor  may  require,  and  shall  at  the  same  time  pay  to 
the  State  Auditor  a  tax  equal  to  one-half  of  one  per  centum 
of  the  gross  value  of  asphalt  and  of  ores  bearing  lead,  zinc, 
jack,  gold,  silver  and  copper  produced,  less  the  royalty  interest, 
and  equal  to  three  per  centum  of  the  gross  value  of  the  pro- 
duction of  petroleum  or  other  crude  or  mineral  oil  and  of 
natural  gas,  less  the  royalty  interest.  The  owner  of  any  royalty 
interest  shall  pay  to  the  State  Auditor  the  tax  herein  imposed 
upon  such  royalty  interest  within  the  time  and  in  the  manner 
provided  by  this  Act. 

The  tax  hereby  declared  shall  also  attach  to  and  is  levied  on 
what  is  knoAvn  as  the  royalty  interest  except  such  royalty  in- 
terest of  the  State  of  Oklahoma  or  such  royalty  interests  as  are 
exempted  from  taxation  under  the  laws  of  the  United  States 
and  the  amount  of  the  tax  on  the  royalty  interest  shall  be  a 
lien  on  such  interest. 

The  State  Auditor  shall  have  power  to  require  any  such 
person,  firm,  corporation  or  association  engaged  in  mining  or 
the  production  of  such  asphalt,  mineral  ores  aforesaid,  petro- 
leum or  other  crude  oil  or  other  mineral  oil  and  natural  gas  or 
owner  of  any  royalty  interest  therein  to  furnish  any  additional 
information  by  him  deemed  to  be  necessary  for  the  purpose  of 
correctly  computing  the  amount  of  said  tax  and  to  examine  the 
books,  records  and  files  of  such  person,  firm,  corporation  or  as- 
sociation, and  shall  have  pOAver  to  examine  witnesses,  and  if 
any  witness  shall  fail  or  refuse  to  appear  and  testify  at  the 
summons  or  requests  of  the  State  Auditor,  said  State  Auditor 
shall  certify  the  facts  and  the  name  of  the  witness  so  failing 
and  refusing  to  appear  and  testify  or  to  produce  any  book, 
record  or  file  to  the  district  court  of  this  State  having  jurisdic- 


84  OKLAHOMA  OIL  AND  GAS  LAWS 

tion  of  the  party,  and  said  court  shall  thereupon  issue  a  sum- 
mons to  said  party  to  appear  and  give  such  evidence  and  pro- 
duce such  books,  records  and  files  as  may  be  required  and  upon 
failing  to  do  so,  the  offending  party  shall  be  punished  as  pro- 
vided by  law  in  cases  of  contempt. 

The  State  Auditor  shall  have  power  to  ascertain  and  de- 
termine whether  or  not  any  return  herein  required  is  a  true 
and  correct  return  of  the  gross  products  and  of  the  value 
thereof  of  such  person,  firm,  corporation  or  association  engaged 
in  the  mining  or  production  of  asphalt  and  ores  bearing  min- 
erals aforesaid  and  of  petroleum  or  other  crude  oil  or  mineral 
oil  and  of  natural  gas,  and  if  any  person,  firm,  corporation  or 
association  has  made  an  untrue  or  incorrect  return  of  the  gross 
production  or  value  thereof,  as  hereinbefore  required,  or  has 
failed  or  refused  to  make  such  return,  the  said  State  Auditor 
shall  ascertain  the  correct  amount  of  either,  and  compute  said 
tax. 

The  payment  of  the  taxes  herein  imposed  shall  be  in  full 
and  in  lieu  of  all  taxes  by  the  State,  counties,  cities,  towns, 
townships,  school  districts  and  other  municipalities  upon  any 
property  rights  attached  to  or  inherent  in  the  right  to  said 
minerals,  upon  leases  for  the  mining  of  asphalt  and  ores  bear- 
ing lead,  zinc,  jack,  gold,  silver  or  copper  or  for  petroleum  or 
other  crude  oil  or  other  mineral  oil  or  for  natural  gas  upon  the 
mining  rights  and  privileges  for  the  minerals  aforesaid  belong- 
ing or  appertaining  to  land,  upon  the  machinery,  appliances 
and  equipment  used  in  and  around  any  well  producing  petro- 
leum or  other  crude  or  mineral  oil  or  natural  gas,  or  any  mine 
producing  asphalt,  or  any  of  the  mineral  ores  aforesaid  and 
actually  used  in  the  operation  of  such  well  or  mine;  and  also 
upon  the  oil,  gas,  asphalt  or  ores  bearing  minerals  herein- 
before mentioned  during  the  tax  year  in  which  the  same  is  pro- 
duced, and  upon  any  investment  in  any  of  the  leases,  rights, 
privileges,  minerals  or  property  hereinbefore  in  this  paragraph 
mentioned  or  described ;  but  any  interest  in  the  land  other  than 


GROSS  PRODUCTION  TAX  85 

that  herein  enumerated,  and  oil  in  storage,  asphalt,  and  ores 
bearing  the  minerals  hereinbefore  named,  mined,  produced  and 
on  hand  at  the  date  as  of  which  property  is  assessed  for  gen- 
eral and  ad  valorem  taxation  for  any  subsequent  tax  year  shall 
be  assessed  and  taxed  as  other  property  within  the  taxing  dis- 
trict in  which  such  property  is  situated  at  the  time. 

The  State  Board  of  Equalization,  upon  its  own  initiative, 
may,  and  upon  complaint  of  any  person  who  claims  that  he  is 
taxed  too  great  a  rate  hereunder,  shall  take  testimony  to  de- 
termine whether  the  taxes  herein  imposed  are  greater,  or  less 
than  the  general  ad  valorem  tax  for  all  purposes  would  be  on 
the  property  of  such  producer  subject  to  taxation  in  the  dis- 
trict or  districts  where  the  same  is  situated,  including  the  value 
of  oil,  gas,  or  mineral  lease,  or  of  the  mining  or  mineral  rights, 
the  machinery,  equipment  or  appliances  used  in  the  actual 
operation  of,  in  and  around  any  such  well  or  mine,  the  value  of 
the  oil,  gas,  asphalt  or  any  of  the  said  mineral  ores  produced 
and  any  other  element  of  taxable  value  in  lieu  of  which  the  tax 
herein  is  levied.  The  said  board  shall  have  power  and  it  shall 
be  its  duty  to  raise  or  lower  the  rates  herein  imposed  to  con- 
form thereto.  An  appeal  may  be  had  from  the  decision  of  the 
State  Board  of  Equalization  thereon,  by  any  person  aggrieved, 
to  the  Supreme  Court,  in  like  manner  and  with  like  effect  as 
provided  by  law  in  other  appeals  from  said  board  to  said  court ; 
provided,  that  after  such  tax  has  been  collected  and  distributed, 
or  paid  without  protest,  no  complaint  with  reference  to  rate 
thereof  shall  be  heard  or  considered.1 

§  114.  Proceedings  and  Penalty  on  Delinquency. — The  tax 
provided  for  in  the  preceding  section  shall  become  delinquent 


1  For  an  able  and  exhaustive  opinion  holding  the  Gross  Production 
Tax  Law  constitutional,  see  In  re  Gross  Production  Tax  of  Wolverine 
Oil  Co.,  53  Okla.  24.  154  Pac.  362,  L.  R.  A.  1916F,  141.  For  other  cases 
on  the  same  subject,  see  Whitehill  v.  Howard,  63  Okla.  176,  163  Pac. 
947;  McAlester-Ed wards  Coal  Co.  v.  Trapp,  43  Okla.  510,  141  Pac.  794. 
disapproved  by  Choctaw,  O.  ft  G.  Ry.  Co.  v.  Harrison,  235  U.  8.  292, 


86  OKLAHOMA  OIL  AND  GAS  LAWS 

after  the  date  fixed  for  each,  quarter  annual  report  to  be  filed 
in  the  office  of  the  State  Auditor  and  from  such  time  shall,  as 
a  penalty  for  such  delinquency,  bear  interest  at  the  rate  of 
eighteen  per  cent  per  annum,  and  shall  be  collected  in  the  man- 
ner hereinafter  provided.  If  any  person,  firm,  association,  or 
corporation  shall  fail  to  make  the  report  of  the  gross  produc- 
tion of  any  mine  or  oil  or  gas  well,  upon  which  a  tax  is  herein 
provided  for  within  the  time  prescribed  by  law  for  such  report 
it  shall  be  the  duty  of  the  State  Auditor  to  examine  the  books, 
records  and  files  of  such  person,  firm,  association  or  corpora- 
tion to  ascertain  the  amount  and  value  of  such  production  to 
compute  the  tax  thereon  as  provided  herein,  and  he  shall  add 
thereto  the  cost  of  such  examination,  together  with  any  penal- 
ties accrued  thereon. 

(Sec.  7465,  Rev.  Laws  1910.) 

§  115.  Rebates  Payable,  When. — When  satisfactory  evidence 
under  oath  is  produced  to  the  State  Auditor  that  any  person, 
firm,  association,  or  corporation  engaged  in  mining  or  produc- 
ing within  this  State  asphalt,  lead,  zinc,  jack,  gold,  silver,  cop- 
per, or  petroleum  or  other  mineral  oil  have  in  this  State  manu- 
factured or  refined  any  portion  of  such  products  in  this  State 
and  thereafter  on  the  finished  products  have  paid  ad  valorem 


35  Sup.  Ct.  Rep.  27,  59  L.  Ed.  234;  Comanche  Light  &  Power  Co.  T. 
Nix,  53  Okla.  220,  156  Pac.  293,  which  follows  Meyer  v.  Wells  Fargo 
&  Co.,  223  U.  S.  298,  32  Sup.  Ct.  Rep.  218,  56  L.  Ed.  445. 

For  cases  on  the  power  of  the  State  to  impose  a  gross  production 
tax  upon  a  federal  agency,  see  Whitehill  v.  Howard,  63  Okla.  176,  163 
Pac.  947;  Protest  of  Bendelari,  Gross  Production  Tax  1919,  82  Okla.  97, 
198  Pac.  606;  Large  Oil  Co.  v.  Howard,  63  Okla.  143,  163  Pac.  537, 
reversed  by  U.  S.  Supreme  Court  in  248  U.  S.  549,  63  L.  Ed.  416;  In  re 
Skelton  Lead  &  Zinc  Co.,  81  Okla.  134,  197  Pac.  495,  holding  that  royal- 
ties due  an  Indian  from  restricted  lands  are  not  taxable  under  this 
Act. 

It  is  the  duty  of  the  State  Board  of  Equalization  to  raise  or  lower 
the  rates  to  conform  to  an  ad  valorem  basis.  Exchange  Oil  Co.  v. 
State,  80  Okla.  52,  193  Pac.  999. 

(S.  L.  1916,  p.  102,  Sec.  1.) 


GROSS  PRODUCTION  TAX  87 

taxes,  the  State  Auditor  is  hereby  authorized  to  rebate  and  pay 
to  such  person,  firm,  association  or  corporation  the  just  pro- 
portion of  taxes  paid  by  said  person,  firm,  association  or  cor- 
poration, on  his  or  its  crude  productions  under  Sections  7464 
(Sec.  113  herein)  which  shall  have  been  found  to  have  been 
turned  into  finished  product  as  aforesaid,  and  cause  such  sum, 
if  any,  so  rebated,  to  be  repaid  by  warrant  drawn  on  the  State 
Treasurer. 

(Sec.  7466,  Rev.  Laws  1910.) 

§  116.  Levy  and  Sale  for  Delinquent  Taxes.— That  Section  2 
of  Subdivision  "A",  of  Article  2,  Chapter  107,  of  the  Session 
Laws  of  Oklahoma,  1915,  be  and  the  same  is  hereby  amended 
to  read  as  follows: 

Section  2.  That  Section  7467  of  the  Revised  Laws  of  Okla- 
homa, 1910,  be  amended  to  read  as  follows: 

Section  7467.  When  any  tax  provided  for  in  this  Act  shall 
become  delinquent  as  provided  in  Section  7465,  Revised  Laws, 
1910  (Sec.  114  herein),  the  State  Auditor  shall  issue  his  war- 
rant directed  to  the  sheriff  of  any  county  wherein  the  same 
or  any  part  thereof  accrued,  for  the  collection  of  the  amount 
of  said  tax,  interest  and  penalty,  and  the  sheriff  to  whom  said 
warrant  shall  be  directed  shall  proceed  to  levy  upon  the  prop- 
erty, assets  and  effects  of  the  person,  firm,  association  or  cor- 
poration against  whom  said  tax  is  assessed,  and  to  sell  the 
same  and  to  make  return  thereof  as  upon  execution.  Such  tax, 
interest  and  penalty  shall  constitute  and  remain  a  lien  upon 
the  property,  assets  and  effects  of  such  person,  firm,  associa- 
tion or  corporation  until  paid,  and  may  be  recovered  at  the 
suit  of  the  State  in  any  court  of  competent  jurisdiction  of  the 
county  where  any  such  property,  assets  and  effects  are  located. 
(S.  L.  1918,  p.  106,  Sec.  2.) 

§  117.  Purchasers  Must  File  Reports. — That  Section  3  of  Sub- 
division "A"  of  Article  2  of  Chapter  107  of  Sessions  Laws  of 
Oklahoma,  1915,  be  and  the  same  is  hereby  amended  to  read  as 
follows : 


88  OKLAHOMA  OIL  AND  GAS  LAWS 

Section  3.  It  shall  be  the  duty  of  every  purchaser  of  petro- 
leum or  other  crude  oil  or  mineral  oil  or  of  natural  gas  from 
producers  thereof  within  the  State,  within  thirty  days  after 
the  expiration  of  the  quarter-annual  period  expiring,  respec- 
tively, on  the  last  day  of  June,  September,  December  and  March 
of  each  year,  to  file  with  the  State  Auditor  a  statement  under 
oath  on  a  form  prescribed  by  him,  showing  the  name  and  ad- 
dress of  each  producer  from  whom  such  oil  and  gas  was  pur- 
chased during  the  quarter-annual  period  last  expiring  together 
with  the  price  therefor  and  such  other  information  as  the  State 
Auditor  may  require;  provided,  that  the  State  Auditor  may 
require  such  purchaser,  hereinbefore  named,  to  keep  for  his 
inspection  separate  books,  records  and  files  in  this  State.  Any 
purchaser  of  such  products  heretofore  named  in  this  section, 
or  any  person,  firm,  association  or  corporation  engaged  in  min- 
ing or  production  within  this  State  of  asphalt,  or  of  ores  bear- 
ing lead,  zinc,  jack,  gold,  silver,  copper  or  petroleum  or  crude 
oil  or  other  mineral  oil  or  of  natural  gas,  who  shall  fail  to  file 
any  sworn  statement  required  by  any  of  the  provisions  of  this 
Act  in  the  manner  and  in  the  time  prescribed  herein  shall  be 
liable  to  a  penalty  of  one  hundred  dollars  for  each  day  he  shall 
so  fail  or  refuse  to  file  such  statement  or  comply  with  said  pro- 
visions, which  shall  be  a  lien  upon  all  the  property  and  assets 
of  such  purchaser  or  producer  located  in  this  State  and  may 
be  recovered  at  the  suit  of  the  State  in  any  court  of  compe- 
tent jurisdiction. 

(S.  L.  1916,  p.  106,  Sec.  3.) 

§  118.  Reports  of  Shippers. — It  shall  be  the  duty  of  every 
railroad  company,  pipe  line  or  transportation  company  to  fur- 
nish to  the  State  Auditor,  through  the  Corporation  Commis- 
sion, any  and  all  data  relative  to  the  shipment  of  crude  oil 
that  may  be  required  to  properly  enforce  the  provisions  of  this 
Act.  The  failure  of  any  railroad  company,  pipe  line  or  trans- 
portation company  to  comply  with  the  provisions  of  this  sec- 
tion shall  make  such  company  liable  to  a  penalty  of  one  hun- 


GROSS  PRODUCTION  TAX  89 

dred  dollars  for  each  day  it  shall  fail  to  furnish  such  statement 
or  comply  with  the  provisions  of  this  Act. 
(S.  L.  1916,  p.  107,  Sec.  4.) 

§  119.  Distribution  and  Use  of  Taxes.— That  Section  4  of 
Subdivision  "A",  of  Article  2,  Chapter  107,  of  the  Session 
Laws,  1915,  be  and  the  same  is  hereby  amended  to  read  as 
follows : 

Section  4.  The  gross  production  tax  provided  for  in  this  Act 
is  hereby  levied  and  collected  for  the  following  specific  pur- 
poses, to-wit : 

(1)  For  current  expenses  of  State  Government:  Two-thirds. 

(2)  For  and  in  aid  of  the  common  schools  of  the  county  from 
whence  the  oil  or  gas  and  other  mineral  is  produced,  one-sixth 
(five  mills). 

(3)  For  and  in  aid  of  the  construction  of  permanent  roads 
and  bridges  of  the  county  from  whence  the  oil  or  gas  and 
other  mineral  is  produced,  one-sixth  (five  mills). 

It  shall  be  the  duty  of  the  State  Auditor  to  pay  two-thirds 
of  all  gross  production  taxes  levied  and  collected  under  the 
provisions  of  this  Act  to  the  State  Treasurer  to  be  credited  to 
the  general  revenue  fund  of  the  State,  and  applied  to  the  cur- 
rent expenses  of  State  Government;  and  to  pay  one-third  the 
sum  collected  from  each  county  whence  the  oil  or  gas  or  asphalt 
or  of  ores  bearing  lead,  zinc,  jack,  gold,  silver  or  copper  was 
produced  to  the  county  treasurer  of  such  county;  one-half  the 
amount  so  paid  to  the  county  treasurer  to  be  credited  to  the 
common  school  fund  of  the  county  in  proportion  to  the  school 
population  of  such  county;  the  remaining  one-half  so  paid  to 
the  county  treasurer  to  be  credited  to  a  fund  of  such  county 
known  as  the  road  and  bridge  fund ;  provided,  that  should  the 
rate  of  tax  herein  levied  be  raised  or  lowered  by  the  State 
Board  of  Equalization,  as  authorized  in  Section  1  of  this  Act, 


90  OKLAHOMA  OIL  AND  GAS  LAWS 

such  increase  or  decrease  shall  be  added  to,  or  deducted  from, 
that  portion  of  the  tax  which  is  levied  for  the  current  expenses 
of  State  Government.2 

(S.  L.  1916,  p.  108,  Sec.  5.) 

§  120.  Validity  of  Provision. — In  case  Section  5  of  this  Act 
shall  for  any  reason  become  ineffective,  then  at  once  shall  the 
proceeds  of  all  gross  production  tax  collected  under  the  pro- 
visions of  this  Act  be  paid  into  the  general  revenue  fund  of 
the  State  and  be  applied  to  the  current  expenses  of  the  State 
Government ;  and  unexpended  balance  at  the  end  of  any  fiscal 
year  to  be  distributed  as  any  other  common  school  funds  of 
the  State. 

(S.  L.  1916,  p.  109,  Sec.  6.) 

§  121.  Act  Not  Eetroactive. — The  passage  and  approval  of 
this  Act  shall  not  be  held  or  construed  as  affecting  any  tax 
and  the  collection  and  distribution  thereof  under  existing  laws 
upon  asphalt,  oil,  gas  or  any  other  mineral  ores  herein  enumer- 
ated, produced  prior  to  the  date  this  Act  becomes  effective. 
But  all  such  taxes  shall  be  collected  and  distributed  under  such 
existing  laws  as  though  this  Act  had  never  been  passed. 
(S.  L.  1916,  p.  109,  Sec.  7.) 

§  122.  Effect  of  Invalid  Parts  of  Act.— The  invalidity  of  any 
section,  subdivision,  paragraph,  provision,  sentence,  or  clause 


2  Board  of  Education  v.  Corey,  63  Okla.  178,  163  Pac.  949,  holding 
that  schools  in  cities  of  the  first  class  are  "common  schools,"  within 
the  meaning  of  this  section. 

Pickett  v.  Smith,  75  Okla.  155,  182  Pac.  680,  holding  that  county 
treasurer  should  include  in  the  apportionment  all  resident  school  chil- 
dren of  the  producing  county,  notwithstanding  the  fact  that  a  portion 
of  them  are  included  in  a  Joint  school  district,  the  larger  portion  of 
which  is  in  an  adjoining  county.  See,  also,  Board  of  Commissioners 
of  Creek  County  v.  Alexander,  58  Okla.  128,  159  Pac.  311. 


GROSS  PRODUCTION  TAX  91 

of  this  Act  shall  not  in  any  manner  effect  the  validity  of  the 
remaining  portion  thereof. 

(S.  L.  1916,  p.  110,  Sec.  8.) 

§  123.  False  Report  Deemed  Perjury. — Any  person  who  shall 
make  any  false  oath  to  any  report  required  by  the  provisions 
of  this  article  shall  be  deemed  guilty  of  perjury. 
(Sec.  7468,  Rev.  Laws  1910.) 


CHAPTER    XVIL 

OIL  AND  GAS  WELL  LIENS. 

§  124.  Liens  for  labor  and  material. 

125.  Same — subcontractor. 

126.  Discharge  of  lien. 

127.  How  lien  is  enforced. 

128.  Statement  to  be  filed. 

129.  Lien  by  or  through  sub-contractor. 

§  124.  Liens  for  Labor  and  Material.— That  Section  3865  of 
the  Revised  Laws  of  Oklahoma,  1910,  be  and  the  same  is  hereby 
amended  to  read  as  follows: 

"Any  person,  corporation  or  co-partnership  who  shall,  under 
contract,  express  or  implied,  with  the  owner  of  any  leasehold 
for  oil  and  gas  purposes  or  the  owner  of  any  gas  pipe  line  or 
oil  pipe  line,  or  with  the  trustee  or  agent  of  such  owner,  per- 
form labor  or  furnish  material,  machinery  and  oil  well  sup- 
plies used  in  the  digging,  drilling,  torpedoing,  completing, 
operating  or  repairing  of  any  oil  or  gas  well,  or  who  shall 
furnish  any  oil  or  gas  well  supplies,  or  perform  any  labor  in 
constructing  or  putting  together  any  of  the  machinery  used  in 
drilling,  torpedoing,  operating,  completing  or  repairing  any  oil 
or  gas  well,  shall  have  a  lien  upon  the  whole  of  such  leasehold 
or  oil  pipe  line  or  gas  pipe  line,  or  lease  for  oil  and  gas  pur- 
poses, the  buildings  and  appurtenances,  and  upon  the  material 
and  supplies  so  furnished  and  upon  the  oil  or  gas  well  for 
which  they  were  furnished,  and  upon  all  the  other  oil  or  gas 
wells,  fixtures  and  appliances  used  in  the  operating  for  oil  and 
gas  purposes  upon  the  leasehold  for  which  said  material  and 
supplies  were  furnished  or  labor  performed.  Such  lien  shall 
be  preferred  to  all  other  liens  or  incumbrances  which  may  at- 
tach to  or  upon  said  leasehold  for  gas  and  oil  purposes  and 
upon  any  oil  or  gas  pipe  line,  or  such  oil  and  gas  wells  and  the 
material  and  machinery  so  furnished  and  the  leasehold  for  oil 

92 


OIL  AND  GAS  WELL  LIENS  93 

and  gas  purposes  and  the  fixtures  and  appliances  thereon  sub- 
sequent to  the  commencement  of  or  the  furnishing  or  putting 
up  of  any  such  machinery  or  supplies ;  and  such  lien  shall  fol- 
low said  property  and  each  and  every  part  thereof,  and  be 
enforceable  against  the  said  property  wherever  the  same  may 
be  found;  and  compliance  with  the  provisions  of  this  article 
shall  constitute  constructive  notice  of  the  lien  claimant's  lien 
to  all  purchasers  and  encumbrancers  of  such  property  or  any 
part  thereof,  subsequent  to  the  date  of  the  furnishing  of  the 
first  item  of  material  or  the  date  of  the  performance  of  the 
first  labor. 

(S.  L.  1919,  p.  367,  Sec.  2.)     See  Form  No.  10  herein.  Uncle 
Sara  Oil  Co.  v.  Richards,  60  Okla.  63,  158  Pac.  1187. 

§  125.  Same — Sub-Contractor. — Any  person,  co-partnership 
or  corporation  who  shall  furnish  such  machinery  or  supplies 
to  a  sub-contractor  under  a  contractor,  or  any  person  who  shall 
perform  such  labor  under  a  sub-contract  with  a  contractor  or 
who,  as  an  artisan  or  day  laborer  in  the  employ  of  such  con- 
tractor, shall  perform  any  such  labor,  may  obtain  a  lien  upon 
said  leasehold  for  oil  and  gas  purposes  or  any  gas  pipe  line  or 
any  oil  pipe  line  from  the  same  tank  and  in  the  same  manner 
and  to  the  same  extent  as  the  original  contractor  for  the 
amount  due  him  for  such  labor,  as  provided  in  the  preceding 
section. 

(Sec.  3866,  Rev.  Laws  1910.)     Christy  v.  Union  Oil  &  Gas 
Co.,  28  Okla.  324,  114  Pac.  740. 

§  126.  Discharge  of  Lien. — Any  person  against  whom  a  claim 
is  filed  under  the  provisions  of  the  law  relating  to  mechanics' 
and  materialmen's  liens  may  at  any  time  upon  three  (3)  days' 
notice  in  writing  to  the  claimant  discharge  such  lien  by  depos- 
iting with  the  Court  Clerk  in  whose  office  such  lien  claim  has 
been  filed  the  amount  of  such  claim  in  cash  and  executing  and 
filing  with  such  Court  Clerk  a  good  and  sufficient  bond  to  the 
claim  and  with  adequate,  solvent  sureties  conditioned  that  such 
person  will  pay  any  reasonable  attorney's  fee  and  all  court 


94  OKLAHOMA  OIL  AND  GAS  LAWS 

costs,  and  interest,  that  may  be  adjudged  against  him  finally 
by  any  court  of  competent  jurisdiction  in  the  event  such  claim- 
ant recovers  judgment  on  such  claim  in  the  amount  for  which 
such  claim  is  filed ;  provided,  the  deposit  of  such  cash  and  the 
execution  and  filing  of  such  bond  shall  not  operate  to  discharge 
such  lien  until  the  expiration  of  five  (5)  days  after  the  deposit 
of  such  cash  and  the  filing  of  such  bond,  during  which  time  the 
lien  claimant  may  apply  to  such  clerk  to  have  the  surety  on 
such  bond  increased,  and  if  upon  such  investigation  the  bond 
proves  to  be  insufficient  the  clerk  shall  immediately  require 
such  additional  surety  thereon  as  may  be  necessary  to  make 
such  bond  solvent,  and  the  lien  shall  not  be  discharged  until 
any  additional  surety  ordered  shall  have  been  given  and  ap- 
proved. In  any  suit  on  such  claim  the  sureties  on  such  bond 
may  be  made  parties  defendant  and  judgment  may  be  rendered 
in  such  action  on  the  bond  for  whatever  amount  the  court  may 
decree  for  a  reasonable  attorney's  fee,  costs  of  suit  and  inter- 
est, but  in  the  event  the  lien  claimant  does  not  recover  judg- 
ment finally  for  the  full  amount  of  the  cash  deposited  no  liability 
shall  exist  upon  said  bond  and  no  judgment  shall  be  rendered 
thereon  for  any  amount,  and  the  balance  of  such  cash  deposit 
over  and  above  the  amount  of  the  claim  filed  shall  be  returned 
by  such  clerk  to  the  person  depositing  same.  Appeals  may  be 
taken  by  any  party  to  the  action  in  the  same  manner  and  to 
the  same  extent  as  in  other  civil  actions. 
(S.  L.  1919,  p.  386,  Sec.  3.) 

§  127.  How  Lien  Is  Enforced. — The  Hens  herein  created  on 
gas  and  oil  property  shall  be  enforced  in  the  same  manner, 
and  notice  of  the  same  shall  be  given  in  the  same  manner, 
and  the  materialinan 's  statement  or  the  lien  of  any  laborer 
herein  mentioned  shall  be  filed  in  the  same  manner  as  is  pro- 
vided for  in  this  chapter  for  enforcing  other  liens. 
(Sec.  3867,  Rev.  Laws  1910.) 

§  128.  Statement  to  Be  Filed. — Any  person  claiming  a  lien 
as  aforesaid  shall  file  in  the  office  of  the  clerk  of  the  district 


OIL  AND  GAS  WELL,  LIENS  95 

court  of  the  county  in  which  the  land  is  situated  a  statement 
setting  forth  the  amount  claimed  and  the  items  thereof  as 
nearly  as  practicable,  the  names  of  the  owner,  the  contractor, 
the  claimant,  and  a  description  of  the  property  subject  to  the 
lien,  verified  by  affidavit;  Provided,  that  if  any  promissory 
note,  bearing  a  lawful  rate  of  interest,  shall  have  been  taken 
for  any  such  labor  or  material,  it  shall  not  be  necessary  to 
file  an  itemized  statement  of  labor  or  material  furnished,  but 
in  lieu  thereof  it  shall  be  sufficient  to  file  a  copy  of  such  note, 
with  a  sworn  statement  that  said  note,  or  any  part  thereof, 
was  given  for  such  kjor  or  material  used  in  the  construction 
of  such  building  or  improvement;  and  if  the  whole  of  such 
note  shall  have  been  given  for  such  labor  or  material,  the 
lien  shall  be  for  the  whole  of  the  principal  and  interest  of 
said  note;  but  if  a  part  of  said  note  only  shall  have  been 
given  for  such  labor  or  material,  then  the  lien  shall  be  for  a 
corresponding  amount  only,  with  interest  at  the  rate  specified 
in  said  note.  Such  statement  shall  be  filed  within  four  months 
after  the  date  upon  which  material  was  last  furnished  or  labor 
last  performed  under  contract  as  aforesaid;  and  if  the  claim 
be  for  the  planting  of  any  trees,  vines,  plants,  or  hedge,  such 
statement  shall  be  filed  within  four  months  from  such  planting. 
Immediately  upon  the  receipt  of  such  statement  the  clerk  of 
the  district  court  shall  enter  a  record  of  the  same  in  a  book 
kept  for  that  purpose,  to  be  called  the  mechanics'  lien  docket, 
which  shall  be  ruled  off  into  separate  columns,  with  headings 
as  follows:  "When  Filed,"  "Name  of  Owner,"  "Name  of 
Claimant,"  "Amount  Claimed,"  "Description  of  Property," 
and  "Remarks,"  and  the  clerk  shall  make  the  proper  entry 
in  each  column. 

(Sec.  3863,  Rev.  Laws  1910.)     See  Form  No.  10  herein.  Cline 
v.  Pattin  Bros.  Co.  (Okla.),  156  Pac.  167. 

§  129.  Lien  By  or  Through  Sub-Contractor. — Any  person  who 
shall  furnish  any  such  material  or  perform  such  labor  as  a 
sub-contractor,  or  as  an  artisan  or  day-laborer  in  the  employ 
of  the  contractor,  may  obtain  a  lien  upon  such  land,  or  improve- 


96  OKLAHOMA  OIL  AND  GAS  LAWS 

ments,  or  both,  from  the  same  time,  in  the  same  manner,  and 
to  the  same  extent  as  the  original  contractor,  for  the  amount 
due  him  for  such  material  and  labor;  and  any  artisan  or  day- 
laborer  in  the  employ  of,  and  any  person  furnishing  material 
to  such  sub -contractor,  may  obtain  a  lien  upon  such  land,  or 
improvements,  or  both,  for  the  same  time,  in  the  same  manner, 
and  to  the  same  extent  as  the  sub-contractor,  for  the  amount 
due  him  for  such  material  and  labor,  by  filing  with  the  clerk 
of  the  district  court  of  the  county  in  which  the  land  is  situated, 
within  sixty  days  after  the  date  upon  which  material  was  last 
furnished  or  labor  last  performed  under  such  sub-contract,  a 
statement,  verified  by  affidavit,  setting  forth  the  amount  due 
from  the  contractor  to  the  claimant,  and  the  items  thereof, 
as  nearly  as  practicable,  the  name  of  the  owner,  the  name  of 
the  contractor,  the  name  of  the  claimant,  and  a  description 
of  the  property  upon  which  a  lien  is  claimed,  and  by  serving 
a  notice  in  writing  of  the  filing  of  such  lien  upon  the  owner 
of  the  land  or  improvements,  or  both :  Provided,  that  if  with 
due  diligence  the  owner  cannot  be  found  in  the  county  where 
the  land  is  situated,  the  claimant,  after  filing  an  affidavit 
setting  forth  such  facts,  may  serve  a  copy  of  such  statement 
upon  the  occupant  of  the  land,  or  the  occupant  of  the  improve- 
ments, as  the  case  may  be;  or,  if  the  same  be  unoccupied, 
he  may  post  such  copy  in  a  conspicuous  place  upon  the  land 
or  any  building  thereon.  Immediately  upon  the  filing  of  such 
statement,  the  clerk  of  the  district  court  shall  enter  a  record 
of  the  same  in  the  docket  provided  for  in  the  preceding  section, 
and  in  the  manner  therein  specified:  Provided,  further,  that 
the  owner  of  any  land  affected  by  such  lien  shall  not  thereby 
become  liable  to  any  claimant  for  any  greater  amount  than  he 
contracted  to  pay  the  original  contractor.  The  risk  of  all  pay- 
ments made  to  the  original  contractor  shall  be  upon  such  owner 
until  the  expiration  of  the  sixty  days  herein  specified,  and  no 
owner  shall  be  liable  to  an  action  by  such  contractor  until 
the  expiration  of  said  sixty  days;  and  such  owner  may  pay 
such  sub-contractor  the  amount  due  him  from  such  contractor 
for  such  labor  and  material,  and  the  amount  so  paid  shall  be 


OIL  AND  GAS  WELL  LIENS  97 

held  and  deemed  a  payment  of  said  amount  to  the  original 
contractor.1 

(Sec  3864,  Rev.  Laws  1910.) 


1  Albert!  v.  Moore,  20  Okla.  78,  93  Pac.  543,  14  L.  R.  A.  (NS)  1036; 
Christy  v.  Union  Oil  &  Gas  Co..  28  Okla.  324,  114  Pac.  740;  Walton 
Lumber  Co.  v.  Cox,  29  Okla.  237,  116  Pac.  798;  Scroggy  v.  Kelley,  32 
Okla.  398,  122  Pac.  694;  Steger  Lumber  Co.  v.  Oklahoma  Presbyterian 
College,  34  Okla.  827,  127  Pac.  381 ;  Joplin  Sash  6  Door  Works  v.  Okla- 
homa Presbyterian  College,  36  Okla.  547,  129  Pac.  40,  43  L.  R.  A.  (NS) 
158n;  Eberle  v.  Drennan,  40  Okla.  59,  136  Pac.  162;  Union  Bond  &  Inv. 
Co.  T.  Bernstein,  40  Okla.  527,  139  Pac.  974;  Steger  Lumber  Co.  r. 
Haynes,  42  Okla.  716,  142  Pac.  1031;  Hoggson  Bros.  v.  Dickason-Good- 
man  Lumber  Co.,  196  Pac.  686;  Republic  Supply  Co.  v.  Powell  (Okla.), 
176  Pac.  519. 


CHAPTER    XVIII. 

EMINENT  DOMAIN  GRANTED. 

§  130.  Eminent  domain  granted  power  companies. 

131.  Rights  granted  not  to  interfere  with  public. 

132.  Rights  same  as  railroads. 

§  130.  Eminent  Domain  Granted  Power  Companies. — Any  per- 
son, firm  or  corporation  organized  under  the  laws  of  this  State, 
or  qualified  to  do  business  in  this  State  to  furnish  light,  heat 
or  power  by  electricity,  gas  or  oil,  provided  the  same  shall 
not  apply  to  interstate  pipe  lines,  shall  have  the  right  to  use 
the  public  roads  and  highways  in  this  State  for  the  purpose 
of  erecting  poles  or  posts  along  or  across  the  same,  and  sustain 
their  wires  and  fixtures  thereon,  or  to  lay  under  the  surface 
of  said  roads  or  highways  pipes  or  conduits  for  the  purpose 
of  selling  electricity  and  gas  or  either,  for  light,  heat  or  power, 
upon  obtaining  the  consent  of  the  Board  of  County  Commis- 
sioners of  the  county  or  counties  in  which  the  public  highways 
are  proposed  to  be  used  for  such  purpose,  such  consent  to  be 
evidenced  by  a  resolution  by  such  board  or  boards  entered  of 
record,  and  such  resolution  shall  specifically  describe  the  par- 
ticular highway  or  highways  to  be  used  and  the  terms  and 
conditions  under  which  the  same  are  to  be  used,  but  said 
poles  and  wires  and  fixtures  shall  be  erected,  placed,  adjusted 
or  laid  and  maintained  under  such  rules  and  regulations  as 
shall  be  prescribed  by  the  Board  of  County  Commissioners  of 
the  county  in  which  said  roads  or  highways  are  located.  Pro- 
vided, that  said  board  may  fix  and  collect  an  annual  franchise 
tax,  which  said  tax,  when  collected,  shall  be  available  for  the 
improvement  or  maintenance  of  the  particular  highway  covered 
by  such  franchise.  Provided,  further,  that  nothing  herein  con- 
tained shall  be  construed  to  grant  the  right  to  use  the  streets 
or  other  public  places  of  any  city  or  incorporated  town,  of 
this  State  without  the  consent  of  such  city  or  incorporated 
town,  as  required  by  Article  18  of  the  Constitution  of  this 

98 


EMINENT  DOMAIN  GRANTED.  99 

State;  and  provided,  further,  that  such  poles,  wires,  conduits 
and  equipment  shall  be  erected,  placed,  adjusted,  laid,  con- 
structed and  maintained  so  as  not  to  incommode  or  endanger 
the  public  in  the  use  of  its  roads,  highways  and  thoroughfares. 
The  failure  of  such  corporation  to  construct  or  maintain  its 
poles,  wires,  conduits  or  equipment  upon  or  under  such  public 
highways  in  complete  accord  with  the  rules  and  regulations 
prescribed  by  the  Board  of  County  Commissioners  of  the  county 
in  which  said  public  highway  is  located,  shall  ipso  facto  forfeit 
the  rights  of  such  corporation  to  the  use  of  such  public  high- 
way or  highways;  and  such  corporation  may  thereupon  be 
ousted  by  proper  legal  proceedings  in  a  court  of  competent  juris- 
diction from  the  use  and  occupance  of  such  public  highway 
or  highways.  And,  provided  further,  that  nothing  herein  con- 
tained shall  be  construed  to  abridge  or  affect  the  rights  of 
abutting  property  owners  along  the  highway. 
(S.  L.  1917,  p.  429,  Sec.  1.) 

§  131.  Rights  Granted  Not  to  Interfere  with  Public.— The 
rights  herein  granted  shall  not  be  so  exercised  as  to  interfere 
with  the  free  and  ordinary  use  of  public  highways  or  the 
exercise  of  the  rights  of  other  public  utilities  lawfully  located 
thereon.  In  addition  to  the  authority  now  or  hereafter  con- 
ferred upon  the  corporation  commission  by  the  Constitution 
and  laws  of  this  State,  said  commission  shall  have  authority 
to  hear  and  determine  all  complaints  and  controversies  involv- 
ing any  interference  with  public  rights,  or  the  right  of  other 
public  service  concerns  in  connection  with  the  exercise  of  the 
rights  and  authority  herein  granted  to  light,  heat  and  power 
companies,  and  fix  reasonable  terms  and  conditions  to  be  com- 
plied with  by  the  respective  parties.  Proceedings  on  complaint 
under  this  act  shall  be  upon  notice  and  subject  to  the  right 
of  appeal  as  in  other  cases  where  notice  and  right  of  appeal 
is  granted  under  the  laws  of  this  State. 
(S.  L.  1917,  p.  430,  Sec.  2.) 

§  132.  Rights  Same  as  Railroads. — Any  person,  firm  or  cor- 
poration organized  under  the  laws  of  this  State,  or  authorized 


100  OKLAHOMA  OIL  AND  GAS  LAWS 

to  do  business  in  this  State,  to  furnish  light,  heat  or  power 
by  electricity  or  gas,  or  any  other  person,  association  or  firm 
engaged  in  furnishing  light,  heat  or  power  by  electricity  or 
gas,  shall  have  and  exercise  the  right  of  eminent  domain  in 
the  same  manner  and  by  like  proceedings  as  provided  for  rail- 
road corporations  by  law  of  this  State. 

(S.  L.  1917,  p.  431,  Sec.  3.)     See  Sec.  68  herein. 


CHAPTER    XIX. 

USE  OF  NITRO-GLYCERIN  AND  OTHER  EXPLOSIVES. 

f  133.  Transportation  in  cities  prohibited. 
134.  Shooting  wells  within  city  limits. 
136.  Authority  of  officers. 

136.  Penalty  for  violation. 

137.  Vehicles  transporting  nitro-glycerin  to  be  labeled. 

138.  Gasoline  kept  in  red  tanks. 

139.  Penalty. 

§  133.  Transportation  in  Cities  Prohibited. — It  shall  be  un- 
lawful from  and  after  the  passage  of  this  Act  for  any  person, 
partnership,  or  corporation  to  haul,  transport  or  cause  to  be 
hauled  or  transported  in  any  manner,  any  nitro-glycerin  over, 
across,  or  upon  any  street,  alley  or  highway  of  any  city,  town 
or  village,  or  any  highway  or  lands  within  one-fourth  mile  of 
any  city,  town  or  village  within  this  State. 

(S.  L.  1919,  p.  347,  Sec.  1;   repealing  by  implication  Sec. 
6971,  Rev.  Laws  1910.) 

§  134.  Shooting  Wells  Within  City  Limits.— It  is  further  pro- 
vided herein  that  if  it  becomes  necessary  at  any  time  to  shoot 
a  well  located  within  any  city,  town  or  village  or  within  the 
prohibited  distance  prescribed  herein,  before  such  well  is  shot 
or  any  nitro-glycerin  is  taken  within  any  city,  town  or  village 
or  within  the  prohibited  distance  herein  prescribed,  permission 
to  take  a  sufficient  amount  of  nitro-glycerin  to  shoot  said  well 
must  first  be  obtained  from  the  Mayor,  City  Council,  Manager 
or  Board  of  Trustees  of  such  city,  town  or  village  where  said 
well  is  to  be  shot. 

(S.  L.  1919,  p.  374,  Sec.  2.) 

§  135.  Authority  of  Officers. — Any  sheriff,  deputy  sheriff,  or 
constable  of  any  county  within  this  State,  or  any  policeman 
or  marshal  of  any  city,  town  or  village  shall  have  the  right 

101 


102  OKLAHOMA  OIL  AND  GAS  LAWS 

to  arrest  any  person  for  the  violation  of  any  of  the  provisions 
of  this  act 

(S.  L.  1919,  p.  347,  Sec.  3.) 

§  136.  Penalty  for  Violation. — Any  person,  partnership  or 
corporation  violating  any  of  the  provisions  of  this  Act  shall 
be  fined  not  less  than  two  hundred  dollars  ($200.00)  nor  more 
than  five  thousand  dollars  ($5,000.00)  or  by  imprisonment  in 
the  county  jail  for  a  term  not  exceeding  twelve  (12)  months 
nor  less  than  sixty  (60)  days. 

(S.  L.  1919,  p.  347,  Sec.  4.) 

§  137.  Vehicles  Transporting-  Nitre-Glycerin  to  Be  Labeled. — 

Every  vehicle  carrying  or  transporting  nitro-glycerin  shall  have 
conspicuously  marked  thereon  in  letters  not  less  than  six  inches 
in  height  on  each  side  and  the  rear  of  such  vehicle,  the  words 
' '  Nitro-Glycerine — Dangerous. ' ' 

(Sec.  6972,  Rev.  Laws  1910.) 

§  138.  Gasoline  Kept  in  Red  Tanks. — All  grocers,  druggists 
and  all  other  vendors  of  gasoline  in  quantities  of  one  hundred 
and  fifty  gallons  and  less  are  hereby  required  to  put  all  gasoline 
by  them  hereafter  kept  for  sale,  or  sold,  in  a  red  can,  tank, 
barrel  or  other  receptacle,  which  receptacle  shall  be  labeled 
"Gasoline,"  and  vendors  of  kerosene  in  quantities  of  two  hun- 
dred fifty  gallons  or  less  shall  not  put  kerosene  in  any  can, 
tank,  barrel  or  other  receptacle  painted  red.  Provided,  that 
all  dealers  shall  be  required  to  keep  for  use  and  shall  place 
all  gasoline  by  them  sold  in  red  cans  or  other  receptacles. 
(Sec.  6975,  Rev.  Laws  1910.) 

§  139.  Penalty. — Any  grocer,  druggist  or  other  person  who 
shall  be  convicted  of  a  violation  of  the  provisions  of  the  pre- 
ceding section  shall  be  deemed  guilty  of  a  misdemeanor,  and 
shall  be  fined  not  less  than  ten  dollars  ($10.00)  nor  more  than 
fifty  dollars  ($50.00),  and  shall  in  addition  thereto  be  liable 
in  damages  in  civil  suit  for  any  damage  resulting  from  a  viola- 
tion of  the  preceding  section. 

(Sec.  6976,  Rev.  Laws  1910.) 


USE  OP  NlTRO-GLYCERIN  AND  OTHER  EXPLOSIVES.  103 

BEFORE  THE  CORPORATION  COMMISSION  OF  OKLAHOMA. 

Prescribing   rules   governing   the   loading  and  ^  CAUSE  No.  4358 

unloading  of  casing-head  gasoline,  naptha,  or  any  I  ORDER  No.  1932 

flammable  liquid  with  a  flashing  point  below  30  j  In  re  Proposed 

degrees  F.  J  Order    No.    173 

FINDINGS  OP  FACT,  OPINION  AND  ORDER. 

The  Commission  on  its  own  initiative  issued  Proposed  Order  No. 
173,  proposing  to  prescribe  rules  governing  the  loading  or  unloading 
of  casing-head  gasoline,  naptha,  or  any  flammable  liquid  with  a  flash- 
ing point  below  30  degrees  F. 

Said  proposed  order  was  published,  according  to  law,  once  a  week 
for  four  weeks  In  the  Daily  Oklahoman,  a  newspaper  of  general  cir- 
culation, published  at  the  capital  of  Oklahoma. 

By  notice  of  hearing  on  said  proposed  order  all  parties  interested 
were  notified  and  directed  to  appear  before  the  Corporation  Commis- 
sion at  Oklahoma  City  on  the  8th  day  of  September,  1921,  to  offer  testi- 
mony or  any  evidence,  or  otherwise  to  show  cause  why  said  proposed 
order  should  not  be  promulgated  in  due  form  as  an  order  of  the  Cor- 
poration Commission. 

On  said  date  hearing  was  duly  held,  all  members  of  the  Commis- 
sion being  present.  Objection  was  raised  to  one  paragraph  of  the 
proposed  order,  to-wit:  paragraph  (4-e),  as  said  order  appeared  In  pub- 
lished notice,  and  upon  the  statement  of  objections  thereto  by  numer- 
ous respondents  said  paragraph  was  stricken.  No  other  objections 
were  offered.  All  those  present  stated  that  with  the  elimination  of 
Section  (4-e),  above  referred  to,  the  proposed  order  was  acceptable 
and  was  considered  a  desirable  and  necessary  regulation. 

WHEREFORE,  the  Commission  being  fully  advised  in  the  premises,  and 
having  given  due  consideration  to  all  matters  contained  and  involved 
in  said  proposed  order,  and  to  all  the  testimony  offered  with  relation 
thereto,  it  is  the  finding  of  the  Commission  that  said  proposed  order 
is  a  necessary  and  desirable  regulation  in  the  interest  of  the  safety  of 
the  public,  and  it  Is  the  order  of  the  Commission  that  the  following 
rules,  regulations  and  requirements  be  promulgated  and  established  to 
govern  the  loading  and  unloading  of  casing-head  gasoline,  naptha  or 
any  flammable  liquid  with  a  flashing  point  below  30  degrees  F. 

ORDER. 

"The  location  of  new  loading  racks  and  unloading  points  for  volatile 
Inflammable  liquids  is  of  great  Importance,  and  for  the  protection  of 
life  and  property  the  following  rules  as  to  location  of  new  installations 
shall  govern.  Casing-bead  gasoline  is  defined  to  be  any  mixture  con- 


104  OKLAHOMA  OIL  AND  GAS  LAWS 

taining  the  condensate  from  casing-head  gas  or  natural  gas  obtained 
by  either  compression  or  absorption  process  and  having  a  vapor  ten- 
sion in  excess  of  8  pounds  per  square  inch." 

LOADING. 

(1-a)  New  loading  racks  for  refinery  gasoline,  benzine,  naptha  or 
any  liquid  (other  than  casing-head  gasoline)  with  a  flashing  point 
below  30  degrees  F.  must  not  be  located  nearer  than  50  feet  to  a  track 
over  which  passenger  trains  are  moved  when  physical  conditions  per- 
mit, and  in  no  case  less  than  25  feet. 

(1-b)  New  loading  racks  for  casing-head  gasoline  must  be  located 
not  less  than  100  feet  distant  from  a  track  over  which  passenger 
trains  are  moved  when  physical  conditions  permit,  and  in  no  case  less 
than  50  feet.  When  within  75  feet  of  such  a  track  a  retaining  wall, 
dike  or  earthen  embankment  shall  be  placed  between  the  installation 
and  the  track,  so  constructed  as  to  effectually  prevent  liquids  from 
flowing  on  to  the  track  in  case  of  accident. 

(1-c)  In  loading  casing-head  gasoline,  the  tank  car  and  the  storage 
tank  shall  be  so  connected  as  to  permit  the  free  flow  of  the  gasoline 
vapors  from  the  tank  car  to  the  storage  tank  and  to  positively  prevent 
the  escape  of  these  vapors  to  the  air,  or  the  vapors  must  be  carried  by 
a  vent  line  to  a  point  not  less  than  100  feet  distant  from  the  nearest 
track  over  which  passenger  trains  are  moved. 

UNLOADING. 

(2-a)  When  new  unloading  points  requiring  railroad  service  for  the 
unloading  of  tank  cars  of  refinery  gasoline,  benzine,  naptha  or  any 
liquid  (other  than  casing-head  gasoline)  with  flash  point  below  30 
degrees  F.  are  required,  the  location  shall  be  subject  to  negotiation 
between  the  carrier  and  the  interested  oil  company. 

(2-b)  New  locations  for  the  unloading  of  casing-head  gasoline  shall 
be  placed  a  minimum  distance  of  50  feet  from  a  track  over  which  pas- 
senger trains  are  moved  where  physical  conditions  do  not  permit  a 
greater  distance  and  a  maximum  distance  of  100  feet  shall  be  required 
where  physical  conditions  permit;  where  old  or  new  installations  are 
placed  within  75  feet  of  track  over  which  passenger  trains  are  moved  a 
retaining  wall,  dike  or  earthen  embankment  shall  be  placed  between 
the  Installation  and  the  track,  so  constructed  as  to  effectually  prevent 
liquids  from  flowing  on  to  the  track  in  case  of  accident. 

STORAGE. 

(8-a)  These  regulations  apply  only  to  above  ground  tanks  for  which 
railroad  service  is  required.  Underground  tanks  should  be  considered 
above  ground  unless  they  are  buried  so  that  the  top  of  the  tank  is  cov 


USE  OP  NlTRO-QLYCERIN   AND  OTHER  EXPLOSIVES.  105 

ered  with  at  least  three  feet  of  earth.    All  tanks  should  be  set  upon  a 
firm  foundation  and  be  electrically  grounded.     • 

(3-b)  Each  tank  over  1,000  gallons  in  capacity  shall  hare  all  man- 
holes, hand  holes,  vent  openings  and  other  openings  which  may  con- 
tain inflammable  vapor,  provided  with  20x20  mesh  brass  wire  screen 
or  its  equivalent,  so  attached  as  to  completely  cover  the  openings  and 
be  protected  against  clogging;  these  screens  may  be  made  removable, 
but  should  be  kept,  normally,  firmly  attached.  Such  a  tank  must  also 
be  properly  vented  or  provided  with  a  suitable  safety  valve  set  to  oper- 
ate at  not  more  than  5  pounds  per  square  inch  for  both  interior 
pressure  and  vacuum;  manhole  covers  kept  closed  by  their  weight 
only  will  be  considered  satisfactory. 

(3-c)  Tanks  used  with  a  pressure  discharge  system  must  have  a 
safety  valve  set  at  not  more  than  one-half  of  the  pressure  to  which  the 
tank  was  originally  tested. 

(3-d)  Tanks  containing  over  500  gallons  and  not  exceeding  18,000 
gallons  of  gasoline,  benzine,  naptha,  casing-head  gasoline,  or  any 
liquid  with  a  flash  point  below  30  degrees  F.  must  be  located  not  lees 
than  20  feet  from  a  track  over  which  passenger  trains  are  moved.  For 
capacities  exceeding  18,000  gallons,  the  following  distances  shall 
govern: 

Capacity  of  Tanks       Minimum  Distance  from  a  Track  over  which 

(in  gallons)  Passenger  Trains  are  moved. 

18,001  to    30,000  40  feet 

30,001    "    48,000  50    " 

48,001    "  100,000  60     " 

100,001    "  150,000  80     " 

150,001    "  250,000  100     " 

250,001    "  500,000  '                    150     " 

Over  500,000  200     " 

(3-e)  Where  practicable,  tanks  should  be  located  on  ground  sloping 
away  from  railroad  property.  If  this  is  impracticable,  then  the  tanks 
must  be  surrounded  by  dikes  of  earth,  or  other  suitable  material,  and 
of  such  nature  and  location  that  in  case  of  breakage  of  the  tanks  the 
liquid  will  be  diverted  to  points  where  passing  trains  will  not  be 
endangered. 

GENERAL. 

(4 -a)  In  measuring  distance  from  any  railroad  track  the  nearest 
rail  shall  be  considered  as  the  starting  point.  During  the  time  that 
the  tank  car  is  connected  by  loading  or  unloading  connections  there 
must  be  signs  placed  on  the  track  or  car  so  as  to  give  necessary  warn- 
ing. Such  signs  must  be  at  least  12x15  inches  in  size  and  bear  the 


106  OKLAHOMA  OIL  AND  GAS  LAWS 

words:  "STOP— TANK  CAR  CONNECTED"  or  "STOP— MEN  AT 
WORK,"  the  word  "STOP"  being  in  letters  at  least  4  inches  high  and 
the  other  words  in  letters  at  least  2  inches  high.  The  letters  must  be 
white  on  a  blue  background.  The  party  loading  or  unloading  the  tank 
car  is  responsible  for  furnishing,  maintaining  and  placing  these  signs. 

(4-b)  In  laying  pipe  lines  on  railroad  property  for  the  loading  or 
unloading  of  tank  cars,  they  must  be  laid  at  a  depth  of  at  least  three 
feet,  and  at  points  where  such  pipe  lines  pass  under  tracks  they  must 
be  laid  at  least  4  feet  below  the  bottom  of  the  ties.  All  connections 
between  tank  cars  and  pipe  lines  must  be  in  good  condition  and  must 
not  permit  any  leakage.  They  must  be  frequently  examined  and  re- 
placed when  they  have  become  worn  in  order  to  insure  at  all  times 
absolutely  tight  connections.  Tank  cars  must  not  be  left  connected 
to  pipe  lines  except  when  loading  or  unloading  is  going  on  and  while 
a  competent  man  is  present  and  in  charge. 

(4-c)  The  ends  of  the  pipe  lines  for  loading  or  unloading  tank  cars 
from  their  bottom  opening,  when  on  railroad  property  should  be  placed 
in  shallow  pits  with  brick  or  concrete  walls  not  closer  than  8  feet  from 
center  line  of  track.  These  pits  should  be  ventilated  and  protected 
by  substantial  one-piece  covers,  level  with  the  surface  of  the  ground, 
which  must  be  kept  locked  in  place  when  the  pits  are  not  in  use.  These 
pits  should  not  be  drained  into  a  sewer  or  running  stream. 

(4-d)  Except  when  closed  electric  lights  are  available  the  loading  or 
unloading  of  tank  cars  on  railroad  property  shall  not  be  permitted 
except  during  daylight  when  artificial  light  is  not  required.  The  pres- 
ence of  flame  lanterns,  nearby  flame  switch  lights  or  other  exposed 
flame  lights  or  fires  during  the  process  of  loading  or  unloading  is  pro- 
hibited." 

This  order  shall  be  in  full  force  and  effect  from  and  after  Septem- 
ber 10,  1921. 

Done  at  Oklahoma  City,  Oklahoma,  this  9th  day  of  September,  1921. 
CORPORATION  COMMISSION  OF  OKLAHOMA, 

(Signed)     CAMPBELL  RUSSELL, 

Chairman. 

(Seal)  (Signed)    ABT  L.  WALKEE, 

Commissioner. 

(Signed)     E.  R.  HUGHES, 

,  Commissioner. 

ATTEST: 

(Signed)     P.  E.  GLENN, 

Secretary. 


CHAPTER     XX. 

WORKMEN'S  COMPENSATION  LAW. 

Article  I.      Definitions. 

II.  Liability. 

III.  Insurance. 

IV.  State  Industrial  Commission. 

V.  Miscellaneous  provisions. 

VI.  Death. 

ARTICLE    I. 

DEFINITIONS. 
9 140.  Title. 

141.  Employments  included  in  Act. 

142.  Definitions  as  used  in  Act. 

§140.  Title.— This  Act  shall  be  known  as  the  "Workmen's 
Compensation  Law."1 

(S.  L.  1915,  p.  572,  Sec.  1.) 

§  141.  Employments  Included  in  Act. — Compensation  pro- 
vided for  in  this  Act  shall  be  payable  for  injuries  sustained 
by  employees  engaged  in  the  following  hazardous  employments, 
to-wit:  Factories,  cotton  gins,  mills  and  workshops  where 
machinery  is  used;  printing,  electrotyping,  photograving  and 
stereotyping  plants  where  machinery  is  used;  foundries,  blast 
furnaces,  mines,  wells,  gas  works,  gasoline  plants,  oil  refineries 


1  Validity  of  Statute.  The  constitutionality  of  the  Oklahoma  law  has 
been  upheld  in  Adams  v.  Iten  Biscuit  Co.,  63  Okla.  52,  162  Pac.  938. 

Construction  of  Statute.  The  act  must  be  construed  as  a  whole,  and 
all  presumptions  Indulged  will  be  In  favor  of  those  for  whose  protec- 
tion the  compensation  was  fixed.  Wick  v.  Gunn  (Okla.)  169  Pac.  1087. 

The  act  must  be  construed  so  as  to  give  effect  to  the  various  sec- 
tions, and  if  such  construction  is  possible,  without  doing  violence  to 
the  spirit  and  language  of  the  act.  Lahoma  Oil  Co.  v.  State  Industrial 
Com.  (Okla.),  175  Pac.  836. 

107 


108  OKLAHOMA  OIL  AND  GAS  LAWS 

and  allied  plants  and  works,  water  works,  reduction  works, 
elevators,  dredges,  smelters,  powder  works,  glass  factories, 
laundries  operated  by  power,  creameries  operated  by  power, 
quarries,  construction  and  engineering  works,  construction  and 
operation  of  pipe  lines,  tanneries,  paper  mills,  transfer  and 
storage,  construction  of  public  roads,  wholesale  mercantile 
establishments,  employees  employed  exclusively  as  salesmen 
or  clerical  workers  excepted ;  operation  and  repair  of  elevators 
in  office  buildings;  logging,  lumbering,  street  and  interurban 
railroads  not  engaged  in  interstate  commerce,  buildings  being 
constructed,  repaired  or  demolished,  farm  buildings  and  farm 
improvements  excepted;  telegraph,  telephone,  electric  light  or 
power  plants  or  lines ;  steam  heating  or  power  plants  and  rail- 
roads not  engaged  in  interstate  commerce. 

(S.  L.  1919,  p.  14,  Sec.  1;  amending  Sec.  2,  p.  574,  S.  L.  1915.) 

§  142.  Definitions  as  Used  in  Act.— 

1.  "Hazardous  employment"  shall  mean  manual  or  mechani- 
cal work  or  labor  connected  with  or  incident  to  one  of  the 
industries,  plants,  factories,  lines,  occupations  or  trades,  men- 
tioned in  Section  2  of  this  Act,  but  shall  not  include  anyone 
engaged  in  agriculture,  horticulture,  or  dairy  or  stock  raising, 
or   in   operating    any   steam   railroad   engaged   in   interstate 
commerce. 

(Amended:  S.  L.  1919,  p.  15,  Sec.  2.) 

2.  "Commission"  means  the  State  Industrial  Commission, 
as  constituted  by  this  Act. 


The  act  does  not  apply  in  case  of  accident  resulting  in  death,  and 
no  right  of  action  for  such  injury  is  denied  or  affected.  Id. 

The  meaning  of  a  word  used  in  the  act  must  be  construed  In  con- 
nection with  words  with  which  it  is  associated.  Board  of  Comrs.  of 
Kingfisher  County  v.  Grimes,  75  Okla.  219,  182  Pac.  897. 

The  term  "engineering  works"  (Sec.  142  herein)  does  not  include 
or  refer  to  work  of  an  engineer  on  a  puhlic  highway.  Id. 

Failure  to  give  notice  of  injury,  within  the  time  required  by  Sec. 


WORKMEN'S  COMPENSATION  LAW.  109 

3.  "Employer,"    except   when   otherwise   expressly   stated, 
means  a  person,  partnership,  association,  corporation,  and  the 
legal  representatives  of  a  deceased  employer,  or  the  receiver 
or  trustee  of  a  person,  partnership,  association,  or  corporation, 
employing   workmen  in   hazardous   employments,   and   shall 
include   the   State,   county,   city  or   any   municipality  when 
engaged  in  any  hazardous  work  within  the  meaning  of  this 
Act  in  which  workmen  are  employed  for  wages.     Provided, 
however,  that  so  long  as  by  State  law,  city  charter  or  municipal 
ordinance,  provision  equal  to  or  better  than  that  given  under 
the  terms  of  this  Act  is  made  for  such  employees  injured  in 
the  course  of  employment,  such  employees  shall  not  be  entitled 
to  the  benefits  of  this  Act. 

4.  "Employee"   means  any  person  engaged  in  manual  or 
mechanical  work,  in  the  employment  of  any  person,  firm  or 
corporation  carrying  on  a  business  covered  by  the  terms  of 
this  Act. 

5.  "Employment"   includes   employment  only  in  a   trade, 
business  or  occupation  carried  on  by  the  employer  for  pecuniary 
gain. 

6.  "Compensation"  means  the  money  allowance  payable  to 
an  employee  as  provided  for  in  this  Act. 

7.  "Injury  or  personal  injury  "  means  only  accidental  injuries 
arising  out  of  and  in  the  course   of  employment  and  such 
disease  or  infection  as  may  naturally  and  unavoidably  result 
therefrom. 


8,  Art.  2  of  the  act  (Sec.  150  herein),  may  be  excused  by  the  Industrial 
Commission.    Unity  Drilling  Co.  v.  Bentley,  77  Okla.  76,  186  Pac.  239. 

Under  Sec.  15,  Art.  2  of  the  Act  (Sec.  156  herein),  the  duration  of 
incapacity  is  a  question  of  fact  to  be  determined  by  the  Commission. 
Stephenson  v.  State  Industrial  Com.,  79  Okla.  228,  192  Pac.  580. 

Under  Sec.  10,  Art.  2  of  the  Act  (Sec.  151  herein),  the  decision  of 
the  Commission  is  final  as  to  all  questions  of  fact.  Id. 

Under  Sec.  12,  Art.  2  of  the  Act  (Sec.  153  herein),  the  CommlMion 
may  at  any  time,  on  the  ground  of  a  change  in  conditions,  review  its 


110  OKLAHOMA  OIL,  AND  GAS  LAWS 

8.  "Wages"  means  the  money  rate  at  which  the  service 
rendered  is  recompensed  under  the  contract  of  hiring  in  force 
at  the  time  of  the  accident,  including  the  reasonable  value  of 
board,  rent,  housing,  lodging  or  similar  advantage  received 
from  the  employer. 

9.  "Insurance    carrier"    shall   include    stock    corporations, 
reciprocal,  or  inter-insurance  association,  or  mutual  associa- 
tions with  which  employers  have  insured,  and  employers  per- 
mitted to  pay  compensation  directly  under  the  provisions  of 
subdivision  (d)  of  Section  1  of  Article  3  of  this  Act. 

10.  "Factory"  means  any  undertaking  in  which  the  busi- 
ness of  working  at  commodities  is  carried  on  with  power  driven 
machinery  either  in  manufacture,  repair,  cleaning  or  assort- 
ing and  shall  include  the  premises,  yard  and  plant  of  the 
concern,  but  shall  not  include  any  such  plants  or  machinery 
used  on  farms. 

11.  "Workshop"  means  any  premises,  yard,  plant,  room  or 
place  wherein  power  driven  machinery  is  employed  and  manual 
or  mechanical  labor  is  exercised  by  way  of  trade  for  gain  or 
otherwise  or  incidental  to  the  process  of  making,  altering, 
repairing,   printing,    or    ornamenting,    cleaning,    finishing    or 
adapting  for  sale  or  otherwise  any  article  or  part  of  articles, 
machine,  or  thing  over  which  premises,  room  or  place,  the 
employer  of  the  person  working  therein  has  the  right  of  access 
or  control. 


former  findings,  and  end,  diminish,  or  increase  the  compensation  pre- 
viously awarded.  Choctaw  Portland  Cement  Co.  v.  Lamb,  79  Okla.  109, 
189  Pac.  750. 

Under  Sec.  17,  Art.  2  of  the  Act  (Sec.  158  herein),  where  the  claim 
is  filed  within  one  year  after  the  injury,  an  application  for  an  in- 
creased award  for  an  increased  injury,  filed  more  than  a  year  after 
the  Injury,  is  not  barred.  Id. 

Under  Sec.  1,  Art  2  of  the  Act  (Sec.  143  herein),  an  injury  resulting 
from  an  assault  by  a  workman  upon  a  fellow  workman  while  the  lat- 


WORKMEN'S  COMPENSATION  LAW.  Ill 

12.  "Mine"    means    any    mine    where    coal,    ore,    mineral 
gypsum,  or  rock  is  dug  or  mined  under  the  ground. 

13.  "Quarry"  means  an  opening  or  cut  from  which  coal  is 
mined,  or  clay,  ore,  mineral  gypsum,  gravel,  sand  or  rock  is 
cut  or  taken  for  manufacturing,  building,   or  construction 
purposes. 

14.  "Construction  work"  or  engineering  work  means  im- 
provement or  alteration  or   repair  of  buildings,   structures, 
streets,  highways,  sewers,  street  railways,  railroads,  logging 
roads,  interurban  railroads,  electric,  steam  or  water  plants, 
telegraph  and  telephone  plants  and  lines,  electric  lines  or  power 
lines,  and  includes  any  other  work  for  the  construction,  alter- 
ing or  repairing  for  which  machinery  driven  by  mechanical 
power  is  used. 

(Amended:  S.  L.  1919,  p.  15,  Sec.  3.) 

15.  Where  several  classes  or  kinds  of  work  is  performed  the 
commission  shall  classify  such  employment  and  the  provisions 
of  this  Act  shall  apply  only  to  such  employees  as  are  engaged 
in  manual  or  mechanical  labor  of  a  hazardous  nature. 

(S.  L.  1915,  p.  574,  Sec.  3.) 

ARTICLE     II. 

LIABILITY. 

§  143.  Compensation  for  disabilities. 

144.  When  court  action  permissible. 

145.  Waiting  time. 


ter  is  engaged  in  the  work  of  the  master,  is  an  accidental  injury  aris- 
ing out  of  and  in  the  course  of  employment.  Stasmas  v.  State  Indus- 
trial Com.,  80  Okla.  221,  195  Pac.  762. 

The  act  must  be  liberally  construed  in  favor  of  the  injured  employee. 
Stasmas  v.  State  Industrial  Com.,  80  Okla.  221,  195  Pac.  762;  Henley 
v.  Okla.  Union  Ry.  Co.,  81  Okla.  224,  197  Pac.  488. 

Under  Sec.  6,  Ch.  14,  S.  L.  1919  (Sec.  145  herein),  if  the  disability 
continues  for  twenty-one  days  or  more,  compensation  shall  be  com- 
puted from  date  of  injury.  Smith  v.  State  Industrial  Com.,  82  Okla. 
157,  199  Pac.  217. 


112  OKLAHOMA  OIL  AND  GAS  LAWS 

146.  Medical  treatment  and  care. 

147.  Basis  of  compensation. 

148.  Schedule  of  compensation, 

149.  Compensation  to  non-resident  aliens. 
150a.  Notice — requirements. 

loOb.  Medical  examinations. 

151.  Filing  of  claims,  arguments  and  hearings. 

152.  Certain  presumptions  in  absence  of  evidence. 

153.  Review  of  awards. 

154.  Appeal  to  Supreme  Court — requirements. 

155.  Costs,  how  taxed. 

.     156.  Payments,  how  and  when  made. 

157.  Failure  to  pay,  penalty. 

158.  Rights  barred  after  one  year's  neglect. 

159.  Damage  by  wrong  of  outsider. 

160.  Benefits  or  savings  not  considered. 

161.  Employee's  agreements  to  pay  premiums  invalid. 

162.  Waivers  invalid. 

163.  Claims  non-assignable. 

164.  Liens  for  compensation. 

§  143.  Compensation  for  Disabilities. — Every  employer  sub- 
ject to  the  provisions  of  this  Act  shall  pay,  or  provide  as 
required  by  this  Act,  compensation  according  to  the  schedules 
of  this  Article  for  the  disability  of  his  employee  resulting  from 
an  accidental  personal  injury  sustained  by  the  employee  arising 
out  of  and  in  the  course  of  his  employment,  without  regard  to 
fault  as  a  cause  of  such  injury,  except  where  the  injury  is 
occasioned  by  the  wilful  intention  of  the  injured  employee  to 
bring  about  injury  to  himself  or  of  another,  or  where  the 
injury  results  directly  from  the  wilful  failure  of  the  injured 


What  Injuries  Included.  It  embraces  all  kinds  of  accidental  injuries 
not  resulting  in  death,  but  does  not  include  willful  or  intentional 
injuries  inflicted  by  the  employer,  nor  injuries  resulting  from  an 
intent  upon  the  part  of  the  employee  to  Injure  himself  or  another,  or 
for  a  willful  failure  to  use  a  guard  or  other  protection  against  acci- 
dent, required  by  statute  or  furnished  pursuant  to  an  order  of  the 
State  Labor  Commissioner.  A  willful  or  intentional  injury,  whether 
inflicted  by  the  employer  or  employee,  could  not  be  considered  as  acci- 
dental, and  therefore  is  not  covered  by  the  act.  Adam  v.  Iten  Biscuit 
Co.,  63  Okla.  52,  162  Pac.  938. 


WOKKMEN'S  COMPENSATION  LAW.  113 

employee  to  use  a  guard  or  protection  against  accident  fur- 
nished for  his  use  pursuant  to  any  statute  or  by  order  of 
the  State  Labor  Commissioner  or  results  directly  from  the 
intoxication  of  the  injured  employee  while  on  duty.  Provided, 
that  the  provisions  of  this  Act,  shall  not  apply  to  any  employer 
unless  he  shall  employ  more  than  two  workmen ;  and,  provided 
further,  that  a  principal  contractor,  intermediate,  or  sub-con- 
tractor, shall  be  liable  for  compensation  to  any  employee 
injured  while  in  the  employ  of  any  of  his  intermediate  or 
sub-contractors  and  engaged  upon  the  subject  matter  of  his 
contract,  to  the  same  extent  as  his  immediate  employer.  Any 
principal,  intermediate  or  sub-contractor,  who  shall  pay  com- 
pensation under  the  foregoing  provision,  may  recover  the 
amount  paid  from  the  subordinate  sub-contractor  through 
whom  he  may  have  been  rendered  liable  under  this  section. 
(S.  L.  1919,  p.  15,  Sec.  4;  amending  Sec.  1,  p.  577,  S.  L.  1915.) 

§  144.  When  Court  Action  Permissible. — The  liability  pre- 
scribed in  the  last  preceding  section  shall  be  exclusive,  except 
that  if  an  employer  has  failed  to  secure  the  payment  of  com- 
pensation for  his  injured  employee,  as  provided  in  this  Act, 
then  an  injured  employee,  or  his  legal  representatives  if  death 
results  from  the  injury,  may  maintain  an  action  in  the  courts 
for  damages  on  account  of  such  injury,  and  in  such  an  action 
the  defendant  may  not  plead  or  prove  as  defense  that  the 
injury  was  caused  by  the  negligence  of  a  fellow  servant,  or 
that  the  employee  assumed  the  risk  of  his  employment,  or 
that  the  injury  was  due  to  the  contributory  negligence  of  the 


The  willful  failure  contemplated  carries  with  it  the  idea  of  pre- 
meditation, obstinacy,  and  intentional  wrong  doing.  Wick  v.  Gunn 
(Okla.),  169  Pac.  1087. 

Where  injury  was  caused  by  the  "horseplay"  of  a  fellow  workman, 
aee  WilliB  v.  State  Industrial  Com.,  78  Okla.  216,  190  Pac.  92. 

Where  an  employee  received  an  injury  which  resulted  in  the  com- 
plete loss  of  four  fingers  and  a  portion  of  the  palm,  and  rendered  the 
thumb  of  but  little  use,  same  will  be  considered  a  permanent  loss  of 
the  use  of  the  hand.  Bristow  Cotton  Oil  Co.  v.  State  Industrial  Com., 
77  Okla.  316.  188  Pac.  658. 


114  OKLAHOMA  On.  AND  GAS  LAWS 

employee.  Provided,  that  this  section  shall  not  be  construed 
to  relieve  the  employer  from  any  other  penalty  provided  for 
in  this  Act  for  failure  to  secure  the  payment  of  compensation 
provided  for  in  this  Act. 

(S.  L.  1919,  p.  16,  Sec.  6;  amending  Sec.  2,  p.  677,  8.  L.  1915.) 

§  145.  Waiting  Time. — No  compensation  shall  be  allowed  for 
the  first  seven  days  of  disability,  except  the  benefits  provided 
for  in  Section  4  of  this  Article.  Provided,  that  should  dis- 
ability continue  for  twenty-one  (21)  or  more  days,  compensa- 
tion shall  be  computed  from  the  date  of  injury. 

(S.  L.  1919,  p.  17,  Sec.  6;  amending  Sec.  3,  p.  578,  S.  L.  1915.) 

§  146.  Medical  Treatment  and  Care. — The  employer  shall 
promptly  provide  for  an  injured  employee  such  medical,  surgi- 
cal or  other  attendance  or  treatment,  nurse  and  hospital  service, 
medicine,  crutches  and  apparatus  as  may  be  necessary,  during 
sixty  days  after  the  injury  or  for  such  time  in  excess  thereof 
as  in  the  judgment  of  the  commission  may  be  required.  If 
the  employer  fails  to  provide  the  same,  the  injured  employee 
may  do  so  at  the  expense  of  the  employer.  The  employee 
shall  not  be  entitled  to  recover  any  amount  expended  by  him 
for  such  treatment  or  services  unless  he  shall  have  requested 
the  employer  to  furnish  the  same  and  the  employer  shall  have 
refused  or  neglected  to  do  so.  All  fees  and  other  charges 
for  such  treatment  and  services  shall  be  subject  to  regulation 
by  the  Commission  as  provided  in  Section  14  of  this  article, 


Where  an  injury  caused  the  loss  of  the  use  of  the  entire  arm  it  is 
equivalent  to  the  loss  of  the  arm,  although  the  amputation  of  the  arm 
was  between  the  elbow  and  the  wrist.  Choctaw  Portland  Cement  Co. 
v.  Lamb,  79  Okla.  109,  189  Pac.  750. 

Where  Injury  is  increased  by  unskillful  medical  treatment  of  phy- 
sician furnished  by  employer,  see  Booth  &  Flinn  v.  Cook,  79  Okla.  280, 
193  Pac.  36. 

For  injury  resulting  from  an  assault  by  a  workman  upon  a  fellow 
workman,  while  the  latter  is  engaged  in  the  work  of  the  master,  see 
Stasmas  v.  State  Industrial  Com.,  80  Okla.  221,  195  Pac.  762. 


WORKMEN'S  COMPENSATION  LAW.  115 

and  shall  be  limited  to  such  charges  as  prevail  in  the  same  com- 
munity for  similar  treatment  of  an  injured  person  of  a  like 
standard  of  living,  and  such  charge*  shall  not  «xceed  the  sum 
of  one  hundred  ($100.00)  dollars,  unless  approved  by  the  Com- 
mission ;  the  Commission  shall  have  authority  to  order  a  change 
of  physicians  when  in  its  judgment  such  change  is  desirable, 
or  necessary;  provided,  the  employer  shall  not  be  liable  to 
make  any  of  the  payments  provided  for  in  this  section,  in  case 
of  a  contest  of  liability  where  the  Commission  shall  decide  that 
the  injury  does  not  come  within  the  terms  of  this  Act. 

(S.  L.  1919,  p.  17,  Sec.  7;  amending  Sec.  4,  p.  678,  S.  L.  1915.) 

§  147.  Basis  of  Compensation. — Except  as  otherwise  provided 
in  this  Act,  the  average  weekly  wages  of  the  injured  employee 
at  the  time  of  the  injury  shall  be  taken  as  the  basis  upon  which 
to  compute  compensation  and  shall  be  determined  as  follows: 

1.  If  the  injured  employee  shall  have  worked  in  the  employ- 
ment in  which  he  was  working  at  the  time  of  the  accident 
whether  for  the  same  employer  or  not,  during  substantially  the 
whole  of  the  year  immediately  preceding  his  injury,  his  aver- 
age annual  earnings  shall  consist  of  three  hundred  times  the 
average  daily  wage  or  salary  which  he  shall  have  earned  in 
such  employment  during  the  days  when  so  employed. 

2.  If  the  injured  employee  shall  not  have  worked  in  such 
employment  during  substantially  the  whole  of  such  year,  his 
average  annual  earnings  shall  consist  of  three  hundred  times 
the  average  daily  wage  or  salary  which  an  employee  of  the 


Course  of  Employment.  Where  an  employee,  during  an  interval  in 
his  work,  was  warming  himself  by  a  fire  on  the  premises  of  the  em- 
ployer, and  was  injured  by  the  explosion  of  a  piece  of  dynamite, 
thrown  into  the  fire  by  a  fellow  employee,  to  see  if  it  would  explode, 
it  was  held  that  the  injury  arose  out  of  and  in  the  course  of  hia  em- 
ployment Willis  v.  Stata  Industrial  Com.,  78  Okla.  216,  190  Pac.  92. 

The  test  of  liability  for  injuries  arising  out  of  and  in  the  course  of 
employment  is  not  the  master's  dereliction,  whether  his  own  or  that 
of  his  representatives  acting  within  the  scope  of  their  authority,  but 


116  OKLAHOMA  OIL  AND  GAS  LAWS 

same  class  working  substantially  the  whole  of  such  imme- 
diately preceding  year  in  the  same  or  in  a  similar  employment 
in  the  same  or  a  neighboring  place  shall  have  earned  in  such 
employment  during  the  days  when  so  employed. 

3.  If  either  of  the  foregoing  methods  of  arriving  at  the  an- 
nual average  earnings  of  an  injured  employee  cannot  reason- 
ably and  fairly  be  applied,  such  annual  earnings  shall  be  such 
sum  as,  having  regard  to  the  previous  earnings  of  the  injured 
employee  and  of  other  employees  of  the  same  or  most  similar 
class,  working  in  the  same  or  most  similar  employment  in  the 
same  or  neighboring  locality,  shall  reasonably  represent  the 
annual  earning  capacity  of  the  injured  employee  in  the  employ- 
ment in  which  he  was  working  at  the  time  of  the  accident. 

4.  The  average  weekly  wages  of  an  employee  shall  be  one- 
fifty-second  part  of  his  average  annual  earnings. 

5.  If  it  be  established  that  the  injured  employee  was  a  minor 
when  injured,  and  that  under  normal  conditions  his   wages 
would  be  expected  to  increase,  the  fact  may  be  considered  in 
arriving  at  his  average  weekly  wages. 

(S.  L.  1915,  p.  579,  Sec.  5.) 

§  148.  Schedule  of  Compensation, — The  following  schedule 
of  compensation  is  hereby  established : 

1.  Permanent  Total  Disability.     In  case  of  total  disability 
adjudged  to  be  permanent,  fifty  per  centum  of  the  average 


la  the  relation  of  the  service  to  the  injury,  of  the  employment  to  the 
risk.    Stasmas  v.  State  Industrial  Com.,  80  Okla.  221,  195  Pac.  762. 

Where  an  employee  was  working  as  a  roustabout  on  a  certain  lease, 
and  was  injured  by  being  burned  in  attempting  to  extinguish  a  fire 
which  had  accidentally  developed  on  the  lease,  it  was  held  that  the 
injury  was  caused  by  an  accident  arising  out  of  and  in  the  course  of 
his  employment.  Associated  Employers'  Reciprocal  v.  State  Industrial 
Com.,  82  Okla.  229,  200  Pac.  174. 

An  employee  does  not  cease  to  be  in  the  course  of  his  employment 
merely  because  he  is  not  actually  engaged  in  doing  some  specifically 


WORKMEN'S  COMPENSATION  LAW.  117 

weekly  wages  shall  be  paid  to  the  employee  during  the  con- 
tinuance of  such  total  disability,  not  exceeding  five  hundred 
weeks.  Loss  of  both  hands,  or  both  feet,  or  both  legs,  or  both 
eyes  or  any  two  thereof,  shall,  in  the  absence  of  conclusive 
proof  to  the  contrary,  constitute  permanent  total  disability. 
In  all  other  cases  permanent  total  disability  shall  be  determined 
in  accordance  with  the  facts. 

2.  Temporary  Total  Disability.     In  case  of  temporary  total 
disability,  fifty  per  centum  of  the  average  weekly  wages  shall 
be  paid  to  the  employee  during  the  continuance  thereof,  but 
not  in  excess  of  three  hundred  weeks,  except  as  otherwise  pro- 
vided in  this  Act. 

(Amended:     S.  L.  1919,  p.  18,  Sec.  8.) 

3.  Permanent  Partial  Disability.    In  case  of  disability  partial 
in  character  but  permanent  in  quality  the  compensation  shall 
be  fifty  per  centum  of  the  average  weekly  wages,  and  shall  be 
paid  to  the  employee  for  the  period  named  in  the  schedule 
as  follows : 

Thumb :  For  the  loss  of  a  thumb,  sixty  weeks. 

First  Finger :  For  the  loss  of  a  first  finger,  commonly  called 
the  index  finger,  thirty-five  weeks. 

Second  Finger :  For  the  loss  of  a  second  finger,  thirty  weeks. 
Third  Finger:  For  the  loss  of  a  third  finger,  twenty  weeks. 

Fourth  Finger:  For  the  loss  of  a  fourth  finger,  commonly 
called  the  little  finger,  fifteen  weeks. 


prescribed  task  if  in  the  course  of  his  employment  he  does  some  act 
which  he  deems  necessary  for  the  benefit  of  his  employer.    Id. 

Compensation.  The  compensation  provided  by  the  act  is  exclusive, 
and  a  right  of  action  in  the  courts  therefor  was  abolished.  Adams  v. 
Iten  Biscuit  Co.,  63  Okla.  52,  162  Pac.  938. 

Where  one  secured  an  award  and  died  before  the  lapse  of  the  max- 
imum number  of  payments  had  been  made,  the  right  to  compensation 
ceased  with  his  death.  Lahoma  Oil  Co.  v.  State  Industrial  Com. 
(Okla.),  175  Pac.  836. 


118  OKLAHOMA  OIL  AND  GAS  LAWS 

Phalange  of  Thumb  or  Finger :  The  loss  of  the  first  phalange 
of  the  thumb  or  finger  shall  be  considered  equal  to  the  loss  of 
one-half  of  such  thumb  or  finger,  and  compensation  shall  be 
one-half  of  the  amount  above  specified;  the  loss  of  more  than 
one  phalange  shall  be  considered  as  the  loss  of  the  entire  thumb 
or  finger;  provided,  however,  that  in  no  case  shall  the  amount 
received  for  more  than  one  finger  exceed  the  amount  provided 
in  this  schedule  for  the  loss  of  a  hand. 

Great  Toe :  For  the  loss  of  a  great  toe,  thirty  weeks. 

Other  Toes:  For  the  loss  of  one  of  the  toes  other  than  the 
great  toe,  ten  weeks. 

Phalange  of  Toe:  The  loss  of  the  first  phalange  of  any  toe 
shall  be  considered  to  be  equal  to  the  loss  of  one-half  of  the 
amount  specified.  The  loss  of  more  than  one  phalange  shall 
be  considered  as  the  loss  of  the  entire  toe. 

Hand :  For  the  loss  of  a  hand,  two  hundred  weeks. 
Arm :  For  the  loss  of  an  arm,  two  hundred  fifty  weeks. 
Foot :  For  the  loss  of  a  foot,  one  hundred  fifty  weeks. 
Eye :  For  the  loss  of  an  eye,  one  hundred  weeks. 
Leg:  For  the  loss  of  a  leg,  one  hundred  seventy-five  weeks. 

Loss  of  Use :  Permanent  loss  of  use  of  a  thumb,  finger,  toe, 
arm,  hand,  foot,  leg  or  eye,  shall  be  considered  as  the  equiva- 
lent of  the  loss  of  such  thumb,  finger,  toe,  hand,  arm,  foot, 
leg  or  eye. 

Amputations:  Amputation  between  the  elbow  and  the  wrist 
shall  be  considered  as  the  equivalent  of  the  loss  of  a  hand. 


Under  Sec.  15,  Art.  2  of  the  Act  (Sec.  156  herein),  the  Commission 
has  power  to  order  the  payment  in  one  or  more  lump  sums,  instead 
of  making  an  award  of  periodical  payments.  Stephenson  v.  State  In- 
dustrial Com.,  79  Okla.  228,  192  Pac.  580. 

Where  an  injury  caused  the  loss  of  the  use  of  the  entire  arm  it  Is 
equivalent  to  the  loss  of  the  arm,  although  the  amputation  of  the  arm 
was  between  the  elbow  and  the  wrist,  and  claimant  is  entitled  to  com- 
pensation accordingly.  Choctaw  Portland  Cement  Co.  v.  Lamb,  79 
Okla.  109,  189  Pac.  750. 


WORKMEN'S  COMPENSATION  LAW.  119 

Amputation  between  the  knee  and  the  ankle  shall  be  consid- 
ered as  the  equivalent  of  the  loss  of  a  foot.  Amputation  at  or 
above  the  elbow  shall  be  considered  as  the  loss  of  an  arm. 
Amputation  at  or  above  the  knee  shall  be  considered  as  the 
loss  of  a  leg.  The  compensation  for  the  foregoing  specific  in- 
juries shall  be  in  lieu  of  all  other  compensations,  except  the 
benefits  provided  in  Section  4  of  Article  2  of  this  Act.  In  case 
of  an  injury  resulting  in  the  loss  of  hearing  or  in  serious  and 
permanent  disfigurement  of  the  head,  face  or  hand,  compensa- 
tion shall  be  payable  in  an  amount  to  be  determined  by  the 
Commission,  but  not  in  excess  of  three  thousand  dollars.  Pro- 
vided, that  compensation  for  loss  of  hearing  or  permanent  dis- 
figurement shall  not  be  in  addition  to  the  other  compensation 
provided  for  in  this  section,  but  shall  be  taken  into  considera- 
tion in  fixing  the  compensation  otherwise  provided. 

Other  Cases :  In  all  other  cases  in  this  class  of  disability  the 
compensation  shall  be  fifty  per  centum  of  the  difference  be- 
tween his  average  weekly  wages  and  his  wage  earning  capacity 
thereafter  in  the  same  employment  or  otherwise  payable  dur- 
ing the  continuance  of  such  partial  disability;  not  to  exceed 
three  hundred  weeks,  but  subject  to  reconsideration  of  the  de- 
gree of  such  impairment  by  the  Commission  on  its  own  motion 
or  upon  the  application  of  any  party  in  interest. 
(Amended:  S.  L.  1919,  p.  18,  Sec.  9.) 

4.  Temporary  Partial  Disability.    In  case  of  temporary  par- 
tial disability,  except  the  particular  cases  mentioned  in  sub- 


The  Commission  has  the  power  to  modify  its  findings  or  orders  from 
time  to  time,  and  to  end,  diminish  or  increase  the  compensation  pre- 
viously awarded.  Id. 

An  injury  resulting  in  the  complete  loss  of  four  fingers  and  a  por- 
tion of  the  palm,  rendering  the  thumb  of  but  little  use,  same  will  be 
considered  a  permanent  loss  of  the  use  of  the  hand,  and  compensa- 
tion allowed  accordingly.  Brlatow  Cotton  Oil  Co.  v.  State  Industrial 
Com.,  77  Okla.  316,  188  Pac.  658. 

The  claimant  is  entitled  to  recover  under  the  schedule  of  compen- 
sation for  the  extent  of  his  disability,  based  upon  the  ultimate  result 


120  OKLAHOMA  OIL  AND  GAS  LAWS 

division  three  of  this  section,  an  injured  employee  shall  receive 
fifty  per  centum  of  the  difference  between  his  average  weekly 
wages  and  his  wage  earning  capacity  thereafter  in  the  same 
employment  or  otherwise,  if  less  than  before  the  injury  dur- 
ing continuance  of  such  partial  disability,  but  not  in  excess 
of  three  hundred  weeks,  except  as  otherwise  provided  in  this 
Act. 

(Amended:     S.  L.  1919,  p.  20,   Sec.  9,  subdivision  4.) 

5.  Limitation.     The  compensation  payment  under  the  pro- 
visions of  this  Act  shall  not  exceed  the  sum  of  eighteen  ($18.00) 
dollars  per  week  or  be  less  than  eight  ($8.00)  dollars  per  week ; 
provided,  however,  that  if  the  employee's  wages  at  the  time 
of  the  injury  are  less  than  eight  ($8.00)  dollars  per  week  he 
shall  receive  his  full  weekly  wages;  provided,  further,  that 
the  compensation  received  as  provided  under  subdivision  4  of 
this  section  shall  not,  when  added  to  the  wages  received  by 
such  employee  after  such  injury,  amount  to  a  greater  sum  than 
his  average  weekly  wages  received  prior  to  said  injury. 

(Amended:     S.  L.  1919,  p.  20,  Sec.  9,  subdivision  5.) 

6.  Previous  Disability.     The  fact  that  an  employee  has  suf- 
fered previous  disability   or  received   compensation  therefor 
shall  not  preclude  him  from  the  compensation  for  a  later  injury, 
but  in  determining  compensation  for  the  later  injury  his  aver- 
age weekly  wages  shall  be  such  sum  as  will  reasonably  repre- 
sent his  earning  capacity  at  the  time  of  the  later  injury. 

(S.  L.  1915,  p.  580,  Sec.  6.) 


of  the  accident,  regardless  of  the  fact  that  the  same  has  been  ag- 
gravated and  increased  by  the  intervening  negligence  of  the  physician 
furnished  by  the  employer.  Booth  &  Flinn  v.  Cook,  79  Okla.  280,  193 
Pac.  36. 

The  Commission  is  without  Jurisdiction  to  order  the  claimant  to 
submit  to  a  surgical  operation  to  minimize  the  compensation.  Henley 
r.  Okla.  Union  Ry.  Co.,  81  Okla.  224,  197  Pac.  488. 

If  the  disability  continues  for  twenty-one  days  or  more,  compensa- 
tion is  allowable  from  date  of  injury.  Smith  v.  State  Industrial  Com,, 
82  Okla.  157,  199  Pac.  217. 


WORKMEN'S  COMPENSATION  LAW.  121 

§  149.  Compensation  to  Non-Resident  Aliens. — Compensation 
under  this  act  to  aliens  not  residents  (or  about  to  become  non- 
residents) of  the  United  States  shall  be  the  same  in  amount  as 
provided  for  residents  except  that  the  Commission  may,  at  its 
option,  or,  upon  the  application  of  the  insurance  carrier,  shall 
commute  all  future  installments  of  compensation  to  be  paid  to 
such  aliens  by  paying  or  causing  to  be  paid  to  them  one-half 
of  the  computed  amount  of  such  future  installments  of  com- 
pensation as  determined  by  the  Commission. 
(S.  L.  1915,  p.  583,  Sec.  7.) 

§  150a.  Notice — Requirements. — Notice  of  an  injury  for 
which  compensation  is  payable  under  this  Act  shall  be  given 
to  the  Commission  and  to  the  employer  within  thirty  days 
after  injury.  Such  notice  may  be  given  by  any  person  claim- 
ing to  be  entitled  to  compensation,  or  by  someone  in  his  behalf. 
The  notice  shall  be  in  writing,  and  contain  the  name  and  ad- 
dress of  the  employee,  and  state  in  ordinary  language,  the  time, 
place,  nature  and  cause  of  the  injury,  and  be  signed  by  him 
or  by  a  person  on  his  behalf.  It  shall  be  given  to  the  Commis- 
sion by  sending  it  by  mail,  by  registered  letter  addressed  to 
the  Commission  at  its  office.  It  shall  be  given  to  the  employer 
by  delivering  it  to  him  or  sending  it  by  mail,  by  registered  let- 
ter, addressed  to  the  employer  at  his  or  its  last  known  place 
of  residence;  provided,  that,  if  the  employer  be  a  partnership 
then  such  notice  may  be  given  to  any  one  of  the  partners, 
and  if  the  employer  be  a  corporation,  then  such  notice  may  be 
given  to  any  agent  or  officer  thereof  upon  whom  legal  process 


Evidence.  The  burden  of  proof  is  upon  the  employer  to  establish 
facts  constituting  a  bar  to  compensation.  Wick  v.  Gunn  (Okla.),  169 
Pac.  1087. 

The  willful  failure  of  a  workman  to  use  safety  appliances  is  a  ques- 
tion to  be  determined  by  the  Commission  from  the  facts  in  each  par- 
ticular case.  Id. 

Record  examined  and  compensation  in  a  lump  sum  for  total  In- 
capacity held  proper.  Stephenson  v.  State  Industrial  Com..  79  Okla. 
228,  192  Pac.  580. 


122  OKLAHOMA  OIL  AND  GAS  LAWS 

may  be  served,  or  any  agent  in  charge  of  the  business  in  the 
place  where  the  injury  occurred.  The  failure  to  give  such 
notice,  unless  excused  by  the  Commission  either  on  the  ground 
that  notice  for  some  sufficient  reason  could  not  have  been  given, 
or  on  the  ground  that  the  insurance  carrier  or  employer,  as 
the  case  may  be,  has  not  been  prejudiced  thereby,  shall  be  a 
bar  to  any  claim  under  this  act. 
(S.  L.  1915,  p.  583,  Sec.  8.) 

§  150b.  Medical  Examinations. — An  employee  injured  claim- 
ing or  entitled  to  compensation  under  this  Act,  shall,  if  re- 
quested by  the  Commission,  submit  himself  for  medical  exami- 
nation at  a  time  and  from  time  to  time,  at  place  reasonably  con- 
venient for  the  employee,  and  as  may  be  provided  by  the  rules 
of  the  Commission.  If  the  employee  or  the  insurance  carrier 
request  he  shall  be  entitled  to  have  a  physician  or  physicians 
of  his  own  selection  to  be  paid  by  him  present  to  participate 
in  such  examination.  If  an  employee  refuses  to  submit  himself 
to  examination,  his  right  to  prosecute  any  proceeding  under 
this  Act  shall  be  suspended,  and  no  compensation  shall  be  pay- 
able for  the  period  of  such  refusal. 
(S.  L.  1915,  p.  584,  Sec.  9.) 

§  151.  Filing  of  Claims,  Arguments  and  Hearings. — At  any 
time  after  the  expiration  of  the  first  seven  days  of  disability 
on  the  part  of  the  injured  employee,  a  claim  for  compensation 
may  be  presented  to  the  Commission.  If  the  employer  and  the 
injured  employee  shall  reach  an  agreement  as  to  the  facts  with 
relation  to  an  injury,  for  which  compensation  is  claimed  under 
this  Act,  a  memorandum  of  such  an  agreement,  in  form  as  pre-. 


The  written  opinion  of  a  physician,  not  under  oath,  and  given  with- 
out notice  to  either  party,  Is  not  sufficient  to  support  an  award.  Flynn 
v.  Ponca  City  Milling  Co.  (Okla.),  177  Pac.  366. 

Appeal  and  Review.  Plaintiff  must  file  brief  within  time  required 
by  rule  5,  governing  appeals  from  Industrial  Commission,  or  appeal 
will  be  dismissed  upon  motion.  Davis  v.  State  Industrial  Com.  (Okla.), 
172  Pac.  638;  Blanlot  v.  Carbon  Coal  Co.,  76  Okla.  16,  183  Pac.  880; 
Mullen  v.  Mitchell,  81  Okla.  201,  197  Pao.  171. 


WORKMEN'S  COMPENSATION  LAW.  128 

scribed  by  the  Commission,  and  signed  by  both  employer  and 
employee,  may  be  immediately  filed  by  the  employer  with  the 
Commission,  and  if  approved  by  the  Commission,  shall,  in  the 
absence  of  fraud,  be  deemed  binding  upon  the  parties  thereto. 
Such  agreement  shall  be  approved  by  the  Commission  only 
when  the  terms  conform  to  the  provisions  of  this  Act. 

The  Commission  shall  have  full  power  and  authority  to  de- 
termine all  questions  in  relation  to  the  payment  of  claims  for 
compensation  under  the  provisions  of  this  Act.  The  Commis- 
sion shall  make,  or  cause  to  be  made,  such  investigation  as  it 
deems  necessary,  and  upon  application  of  either  party  shall 
order  a  hearing,  and  within  thirty  days  after  a  claim  for  com- 
pensation is  submitted  under  this  section,  or  such  hearing 
closed,  shall  make  or  deny  any  award,  determining  such  claim 
for  compensation,  and  file  the  same  in  the  office  of  the  Com- 
mission together  with  the  statement  of  its  conclusion  of  fact 
and  rulings  of  law.  The  Commission  may,  before  making  an 
award,  require  the  claimant  to  appear  before  an  arbitration 
committee  appointed  by  it  and  consisting  of  one  representative 
of  employees,  one  representative  of  employers,  and  either  a 
member  of  the  Commission  or  a  person  especially  deputized  by 
the  Commission  to  act  as  chairman,  before  which  the  evidence 
in  regard  to  the  claim  shall  be  adduced  and  by  which  it  shall 
be  considered  and  reported  upon.  Immediately  after  such  fil- 
ing the  Commission  shall  send  to  the  parties  a  copy  of  the 
decision.  Upon  a  hearing  pursuant  to  this  section  either  party 
may  present  evidence  and  be  represented  by  counsel.  The  de- 
cision of  the  Commission  shall  be  final  as  to  all  questions  of 


The  decision  of  the  Commission  Is  final  as  to  all  questions  of  fact. 
Stephenson  v.  State  Industrial  Com.,  79  Okla.  228,  192  Pac.  580;  Board 
of  Comrs.  of  Cleveland  County  v.  Barr  (Okla.),  173  Pac.  206;  Rauler- 
son  v.  State  Industrial  Com.,  78  Okla.  8,  183  Pac.  880;  Francis  Vitrio 
Brick  Co.  v.  State  Industrial  Com.,  76  Okla.  314,  185  Pac.  525;  Wilson 
Lumber  Co.  v.  Wilson,  77  Okla.  312,  188  Pac.  668;  Choctaw  Portland 
Cement  Co.  v.  Lamb,  79  Okla.  109,  189  Pac.  750;  Mullen  v.  Mitchell,  81 
Okla.  201,  197  Pac.  171:  Booth  &  Flinn  v.  Cook,  79  Okla,  280,  198 
Pac.  36. 


124  OKLAHOMA  OIL  AND  GAS  LAWS 

fact,  and  except  as  provided  in  Section  13  of  this  Article  as  to 
all  questions  of  law. 

(S.  L.  1919,  p.  21,  Sec.  10;  amending  Sec.  10,  p.  584,  S.  L. 
1915.) 

§  152.  Certain  Presumptions  in  Absence  of  Evidence. — In  any 
proceeding  for  the  enforcement  of  a  claim  for  compensation 
under  this  Act,  it  shall  be  presumed  in  the  absence  of  sub- 
stantial evidence  to  the  contrary: 

1.  That  the  claim  comes  within  the  provisions  of  this  Act. 

2.  That  sufficient  notice  thereof  was  given. 

3.  That  the  injury  was  not  occasioned  by  the  wilful  inten- 
tion of  the  injured  employee  to  bring  about  the  injury  of  him- 
self or  of  another. 

4.  That  the  injury  did  not  result  solely  from  the  intoxica- 
tion of  the  injured  employee  while  on  duty. 

5.  That  the  injury  did  not  result  directly  from  the  wilful 
failure  of  the  injured  employee  to  use  a  guard  or  protection 
against  accident  furnished  for  his  use  pursuant  to  any  statute 
or  by  order  of  the  Labor  Commissioner. 

(S.  L.  1915,  p.  585,  Sec.  11.) 

§  153.  Review  of  Awards. — Upon  its  own  motion  or  upon  the 
application  of  any  party  in  interest,  on  the  ground  of  a  change 
in  conditions,  the  Commission  may  at  any  time  review  any 
award,  and,  on  such  review,  may  make  an  award  ending,  di- 
minishing or  increasing  the  compensation  previously  awarded, 
subject  to  the  maximum  or  minimum  provided  in  this  act,  and 
shall  state  its  conclusions  of  fact  and  rulings  of  law,  and  shall 
immediately  send  to  the  parties  a  copy  of  the  award.  No  such 
review  shall  effect  such  award  as  regards  any  money  already 
paid. 

(S.  L.  1915,  p.  586,  Sec.  12.) 

§  154.  Appeal  to  Supreme  Court — Requirements. — The  award 
or  decision  of  the  Commission  shall  be  final  and  conclusive  upon 
all  questions  within  its  jurisdiction  between  the  parties,  unless 


WORKMEN'S  COMPENSATION  LAW.  125 

within  thirty  days  after  a  copy  of  such  award  or  decision  has 
been  sent  by  said  Commission  to  the  parties  affected,  an  action 
is  commenced  in  the  Supreme  Court  of  the  State  to  review  such 
award  or  decision.  Said  Supreme  Court  shall  have  original 
jurisdiction  of  such  action,  and  is  authorized  to  prescribe  rules 
for  the  commencement  and  trial  of  the  same.  Such  action  shall 
be  commenced  by  filing  with  the  clerk  of  the  Supreme  Court 
a  certified  copy  of  the  award  or  decision  of  the  Commission 
attached  to  the  petition  by  the  complainant,  wherein  the  com- 
plainant or  petitioner  shall  make  his  assignments  or  specifica- 
tions as  to  wherein  said  award  or  decision  is  erroneous  and 
illegal.  Said  proceeding  shall  be  heard  in  a  summary  manner 
and  have  precedence  over  all  other  civil  cases  in  such  court, 
except  preferred  Corporation  Commission  appeals.  The  Com- 
mission shall  be  deemed  a  party  to  such  proceeding  and  the 
Attorney  General,  without  extra  compensation,  shall  represent 
the  Commission  therein.  Such  action  shall  be  subject  to  the 
law  and  practice  applicable  to  other  civil  actions  cognizable  in 
said  court.  Upon  the  final  determination  of  said  action  in 
which  the  award  or  decision  of  the  Commission  is  sought  to  be 
reviewed,  the  Commission  shall  make  an  order  or  decision  in 
accordance  with  the  judgment  of  said  court.  The  Commission 
shall  not  be  liable  for  any  costs  apart  from  said  proceeding, 
but  otherwise  the  costs  shall  be  taxed  as  in  other  cases. 
(S.  L.  1915,  p.  585,  Sec.  13.) 

§  155.  Costs,  How  Taxed. — If  the  Commission  or  the  court 
before  which  any  proceedings  for  compensation  or  concerning 
an  award  of  compensation  have  been  brought,  under  this  Act, 
determine  that  such  proceedings  have  not  been  so  brought  on 
reasonable  ground,  it  shall  assess  the  whole  cost  of  the  pro- 
ceedings on  the  party  who  has  so  brought  them.  Claims  for 
legal  services  in  connection  with  any  claim  arising  under  this 
act,  and  claims  for  services  or  treatment  rendered  or  supplies 
furnished  pursuant  to  Section  4,  of  Article  2  of  this  Act,  shall 
not  be  enforceable  unless  approved  by  the  Commission.  If  so 
approved  such  claim  or  claims  shall  become  a  lien  upon  the 


126  OKLAHOMA  OIL  AND  GAS  LAWS 

compensation  awarded,  but  shall  be  paid  therefrom  only  in  the 
manner  fixed  by  the  Commission, 
(8.  L.  1915,  p.  6S7,  Sec.  14.) 

§  156.  Payments,  How  and  When  Made. — Compensation  nn- 
der  the  provisions  of  this  Act  shall  be  payable  periodically, 
hi  accordance  with  the  method  of  payment  of  the  wages  of  the 
employee  at  the  time  of  his  injury  and  shall  be  so  provided  for 
in  any  award ;  but  the  Commission  may  determine  that  all  pay- 
ment or  payments  may  be  made  monthly  or  at  any  other  period, 
as  it  may  deem  advisable.  The  Commission,  whenever  it  shall 
so  deem  advisable,  may  commute  such  periodical  payments  to 
one  or  more  lump  sum  payments,  provided  the  same  shall  be 
in  the  interest  of  justice.  All  payments  as  required  by  the 
award  shall  be  made  to  the  injured  employee  in  the  manner 
and  form  prescribed  by  the  Commission.  And  employers  and 
insurance  companies  shall  for  such  purposes  be  permitted,  or, 
when  necessary  to  protect  the  interests  of  the  beneficiary,  may 
be  required,  to  make  deposits  with  the  Commission  to  secure 
the  prompt  and  convenient  payment  of  such  compensation. 
(S.  L.  1915,  p.  587,  Sec.  15.) 

§  157.  Failure  to  Pay,  Penalty. — If  payment  of  compensation, 
or  an  installment  thereof,  due  under  the  terms  of  an  award, 
except  in  case  of  appeal  from  an  award,  be  not  made  within 
ten  days  after  the  same  is  due,  by  the  employer  or  insurance 
corporation  liable  therefor,  the  amount  of  such  payment  shall 
constitute  a  liquidated  claim  for  damages  against  such  em- 
ployer or  insurance  corporation,  which  with  an  added  penalty 
of  fifty  per  centum  may  be  recovered  in  an  action  to  be  insti- 
tuted by  the  Commission  in  the  name  of  the  people  of  the 
State.  If  such  default  be  made  in  payment  of  an  installment 
of  compensation  and  the  whole  amount  of  such  compensation 
be  not  due,  the  Commission  may,  if  the  present  value  of  such 
compensation  be  computable,  declare  the  whole  amount  thereof 
due,  and  recover  the  amount  thereof  with  the  added  penalty 
of  fifty  per  centum,  as  provided  in  this  section.  Any  such 
action  may  be  compromised  by  the  Commission  or  may  be 


WORKMEN'S  COMPENSATION  LAW.  137 

prosecuted  to  final  judgments,  as  in  the  discretion  of  the  Com- 
mission, may  best  serve  the  interests  of  th«  persons  entitled 
to  receive  the  compensation  for  the  benefits.  Compensation 
recovered  under  this  section  shall  be  disbursed  by  the  Com- 
mission to  the  persons  entitled  thereto  in  accordance  with  the 
award.  A  penalty  recovered  pursuant  to  this  section  shall  be 
paid  into  the  State  Treasury,  and  be  applicable  to  the  expenses 
of  the  Commission. 

(S.  L.  1915,  p.  588,  Sec.  16.) 

§  158.  Rights  Barred  After  One  Year's  Neglect.— The  right 
to  claim  compensation  under  this  Act  shall  be  forever  barred 
unless  within  one  year  after  the  injury,  a  claim  for  compensa- 
tion thereunder  shall  be  filed  with  the  Commission. 
(S.  L.  1915,  p.  588,  Sec.  17.) 

§  159.  Damage  by  Wrong  of  Outsider. — If  a  workman  en- 
titled to  compensation  under  this  Act  be  injured  by  the  negli- 
gence or  wrong  of  another  not  in  the  same  employ,  such  in- 
jured workman  shall,  before  any  suit  or  claim  under  this  Act, 
elect  whether  to  take  compensation  under  this  Act  or  to  pursue 
his  remedy  against  such  other.  Such  election  shall  be  evi- 
denced in  such  manner  as  the  Commission  may  by  rule  or  regu- 
lation prescribe.  If  he  elects  to  take  compensation  under  this 
Act,  the  cause  of  action  against  such  other  shall  be  assigned 
to  the  insurance  carrier  liable  for  the  payment  of  such  com- 
pensation, and  if  he  elects  to  proceed  against  such  other  per- 
son or  insurance  carrier,  as  the  case  may  be,  shall  contribute 
only  the  deficiency,  if  any,  between  the  amount  of  the  recovery 
against  such  other  person  actually  collected,  and  the  compensa- 
tion provided  or  estimated  by  this  Act  for  such  case.  The 
compromise  of  any  such  cause  of  action  by  the  workman  at 
any  amount  less  than  the  compensation  provided  for  by  this 
act  shall  be  made  only  with  the  written  approval  of  the  Com- 
mission, and  otherwise  with  the  written  approval  of  the  person 
or  insurance  carrier  liable  to  pay  the  same. 
(S.  L.  1915,  p.  588,  Sec.  18.) 


128  OKLAHOMA  OIL  AND  GAS  LAWS 

§  160.  Benefits  or  Savings  Not  Considered. — No  benefits,  sav- 
ings or  insurance  of  the  injured  employee,  independent  of  the 
provisions  of  this  Act,  shall  be  considered  in  determining  the 
compensation  or  benefit  to  be  paid  under  this  Act. 
(S.  L.  1916,  p.  589,  Sec.  19.) 

§161.  Employee's  Agreements  to  Pay  Premiums  Invalid. — 
No  agreement  by  any  employee  to  pay  any  portion  of  the 
premiums  paid  by  his  employer  to  the  cost  of  mutual  insurance 
or  other  insurance,  maintained  for  or  carried  for  the  purpose 
of  providing  compensation  as  herein  required,  shall  be  valid, 
and  any  employer  who  makes  a  deduction  for  such  purpose 
from  the  wages  or  salary  of  any  employee  entitled  to  the 
benefits  of  this  Act  shall  be  guilty  of  a  misdemeanor. 
(S.  L.  1915,  p.  589,  Sec.  20.) 

§  162.  Waivers  Invalid. — No  agreement  by  an  employee  to 
waive  his  right  to  compensation  under  this  Act  shall  be  valid. 
(S.  L.  1915,  p.  589,  Sec.  21.) 

§  163.  Claims  Non-Assignable. — Claims  for  compensation  or 
benefits  due  under  this  Act  shall  not  be  assigned,  released  or 
commuted  except  as  provided  by  this  Act,  and  shall  be  exempt 
from  all  claims  of  creditors  and  from  levy,  execution  and  at- 
tachment or  other  remedy  for  recovery  or  collection  of  a  debt, 
which  exemption  may  not  be  waived.  Compensation  and  bene- 
fits shall  be  paid  only  to  employees. 
(S.  L.  1915,  p.  590,  Sec.  22.) 

§  164.  Liens  for  Compensation. — The  right  of  compensation 
granted  by  this  Act  shall  have  the  same  preference  or  lien 
without  limit  of  amount  against  the  assets  of  the  employer  as  is 
now  or  hereafter  may  be  allowed  by  law  for  a  claim  for  unpaid 
wages  for  labor. 

(S.  L.  1915,  p.  590,  Sec.  23.) 

ARTICLE    III. 

INSURANCE. 

1 165.  Employer's  insurance. 
166.  Compliance,  posting  notices. 


WORKMEN'S  COMPENSATION  LAW.  129 

167.  Failure  to  secure  payment  of  compensation. 

168.  Policies,  requirements  in  general. 

§  165.  Employer's  Insurance. — An  employer  shall  secure  com- 
pensation to  his  employees  in  one  of  the  following  ways: 

(a)  By  insuring  and  keeping  insured  the  payment  of  such 
compensation  with  any  stock  corporation  or  mutual  association 
or  by  exchanging  contracts  of  indemnity  or  inter-insurance, 
under  reasonable  regulations  prescribed  by  the  Commission 
providing  for  and  securing  the  payment  of  the  compensation 
provided  in  this  Act,  or  other  concerns  authorized  to  transact 
the   business   of  workmen's   compensation  insurance   in   this 
State.     If  insurance  be  so   affected  in  such  corporation  or 
mutual  association  or  reciprocal  or  inter-insurance  association, 
the  employer  shall  forthwith  file  with  the  Commission,  in  form 
prescribed  by  it,  a  notice  specifying  the  name  of  such  insur- 
ance corporation  or  mutual  association  or  reciprocal  or  inter- 
insurance  association  together  with  a  copy  of  the  contract  or 
policy  of  insurance. 

(b)  By  obtaining  and  keeping  in  force  guaranty  insurance 
with  any  company  authorized  to  do  such  guaranty  business  in 
this  State;  provided,  that  any  person,  firm,  association  or  cor- 
poration engaged  in  the  business  of  writing  insurance  as  re- 
quired of  an  employer  by  this  Act  who  refuses  to  limit  the 
policy  to  be  written  when  requested  by  the  assured,  to  em- 
ployees engaged  in  hazardous  employment,  shall  be  guilty  of  a 
violation  of  the  insurance  laws  of  this  State,  and  the  State 
Insurance  Board  shall  punish  such  violation  as  provided  in 
Section  20,  Chapter  174,  Session  Laws  of  Oklahoma,  1915,  or 

(c)  Subject  to  the  approval  of  the  Commission,  any  employer 
may  enter  into  or  continue  an  agreement  with  his  or  their 
workmen  to  provide  a  scheme  of  compensation,  benefits  or 
insurance  in  lieu  of  the  compensation  and  insurance  provided 
by  this  Act;  but  such  scheme  shall  in  no  instance  provide  less 
than  the  benefits  here  secured  nor  vary  the  period  of  compen- 
sation provided  for  disabilities  or  the  provisions  of  this  ACT 
with  respect  to  periodic  payments  or  the  percentage  that  such 


130  OKLAHOMA  OIL  AND  GAS  LAWS 

payments  shall  bear  to  weekly  wages,  except  that  the  sums 
required  may  be  increased ;  provided,  further,  that  the  approval 
of  the  State  Industrial  Commission  shall  be  granted,  if  the 
scheme  provides  for  contributions  by  workmen,  only  when  it 
confers  benefits  in  addition  to  those  required  by  this  Act  com- 
mensurate with  such  contributions. 

(d)  By  furnishing  satisfactory  proof  to  the  Commission  of 
his  financial  ability  to  pay  such  compensation  for  himself,  in 
which  case  the  Commission  may,  in  its  discretion,  require  the 
deposit  with  the  Commission  of  securities  or  indemnity  bond 
in  an  amount  and  of  a  kind  to  be  determined  by  the  Commis- 
sion to  secure  his  liability  to  pay  the  compensation  provided 
for  in  this  Act. 

If  any  employer  fails  to  comply  with  this  section  he  shall  be 
liable  to  a  penalty  for  every  day  which  such  failure  continues 
of  one  dollar  for  every  employee  to  be  recovered  in  action 
brought  by  the  Commission. 

The  Commission  may,  in  its  discretion,  for  good  cause  shown, 
remit  any  such  penalty ;  provided,  the  employer  in  default  se- 
cure compensation  as  provided  in  this  section. 

(S.  L.  1919,  p.  22,  Sec.  11;  amending    S.    L.    1915,    p.    690, 
Sec.  1.) 

§  166.  Compliance,  Posting  Notices. — Every  employer  who 
has  complied  with  Section  1  of  Article  3  of  this  Act,  shall  post 
and  maintain  in  a  conspicuous  place  or  places  in  and  about 
his  place  or  places  of  business  typewritten  or  printed  notices 
in  form  prescribed  by  the  Commission,  stating  the  fact  that  he 
has  complied  with  all  the  rules  and  regulations  of  the  Commis- 
sion and  that  he  has  secured  the  payment  of  compensation  to 
his  employees  (and  their  dependents)  in  accordance  with  the 
provisions  of  this  Act. 

(S.  L.  1915,  p.  591,  Sec.  2.) 

§  167.  Failure  to  Secure  Payment  of  Compensation. — Failure 
on  the  part  of  any  employer  to  secure  the  payment  of  com- 


WORKMEN'S  COMPENSATION  LAW.  181 

pensation  provided  in  this  Act  shall  have  the  effect  of  enabling 
the  Commission  to  proceed  on  behalf  of  an  injured  employee 
of  such  employer  against  the  employer  as  provided  in  Section 
2  of  Article  2  of  this  Act,  and  as  provided  in  Section  1  of 
Article  3  of  this  Act. 

(S.  L.  1915,  p.  592,  Sec.  3.) 

§  168.  Policies,  Requirements  in  General. — (a)  Every  policy 
of  insurance  covering  the  liability  of  the  employer  for  com- 
pensation issued  by  a  stock  company  or  by  mutual  association 
or  other  concern  authorized  to  transact  workman's  compensa- 
tion insurance  in  this  State  shall  contain  a  provision  setting 
forth  the  right  of  the  Commission  to  enforce  in  the  name  of  the 
people  of  the  State  of  Oklahoma  for  the  benefit  of  the  person 
entitled  to  the  compensation  insured  by  the  policy  either  by 
filing  a  separate  application  or  by  making  the  insurance  carrier 
a  party  to  the  original  application,  the  liability  of  the  insur- 
ance carrier  in  whole  or  in  part  for  the  payment  of  such  com- 
pensation; provided,  however,  that  payment  in  whole  or  in 
part  of  said  compensation  by  either  the  employer  or  the  insur- 
ance carrier  shall,  to  the  extent  thereof,  be  a  bar  to  the  recov- 
ery against  the  other  of  the  amount  so  paid. 

(b)  Every  such   policy  shall  contain   a  provision  that,  as 
between  the  employee  and  the  insurance  carrier,  the  notice  to 
or  knowledge  of  the  occurrence  of  the  injury  on  the  part  of  the 
employer  shall  be  deemed  notice  or  knowledge,  as  the  case 
may  be  on  the  part  of  the  insurance  carrier;  that  jurisdiction 
of  the  employer  shall,  for  the  purpose  of  this  Act,  be  jurisdic- 
tion of  the  insurance  carrier  and  that  the  insurance  carrier 
shall  in  all  things  be  bound  by  and  subject  to  the  orders,  find- 
ing, decisions  or  awards  rendered  against  the  employer  for  the 
payment  of  compensation  under  the  provisions  of  this  Act. 

(c)  Every  such  policy  shall  contain  a  provision  to  the  effect 
that  the  insolvency  or  bankruptcy  of  the  employer  shall  not 
relieve  the  insurance  carrier  from  the  payment  of  compensa- 
tion for  injuries  sustained  by  an  employee  during  the  life  of 
such  policy. 


132  OKIxAHOMA    OlL   AND   GAS   LAWB 

(d)  Every  such  policy  shall  contain  a  provision  that,  as  the 
purpose  of  which  is  to  indemnify  him  from  loss  or  damage  on 
account  of  the  injury  of  an  employee  by  accidental  means,  or 
on  account  of  the  negligence  of  such  employer  or  his  officer, 
agent  or  servant  shall  be  absolutely  void  unless  it  shall  also 
cover  liability  for  the  payment  of  the  compensation  provided 
for  by  this  Act. 

(e)  No  contract  of  insurance  issued  by  a  stock  company, 
mutual  association  or  other  concern  against  the  liability  aris- 
ing under  this  act  shall  be  cancelled  within  the  time  limited 
in  such  contract  for  its  expiration  until  at  least  ten  days  after 
notice  of  intention  to  cancel  such  contract,  on  a  date  specified 
in  such  notice  shall  be  filed  in  the  office  of  the  Commission  and 
also  served  on  the  employer.     Such  notice  shall  be  served  on 
the  employer  by  delivering  it  to  him  or  by  sending  it  by  mail, 
by  registered  letter  addressed  to  the  employer  at  his  or  its  last 
known  place  of  residence ;  provided,  that  if  the  employer  be  a 
partnership,  then  such  notice  may  be  so  given  to  any  one  of 
the  partners,  and  if  the  employer  be  a  corporation,  then  the 
notice  may  be  given  to  any  agent  or  officer  of  the  corporation 
upon  whom  legal  process  may  be  served. 

(S.  L.  1915,  p.  592,  Sec.  4.) 

ARTICLE    IV. 

STATE  INDUSTRIAL  COMMISSION. 

§  169.  Appointed  by  Governor. 

170.  Secretary  to  Commission. 

171.  Office  of  Commission. 

172.  Sessions — quorum — records. 

173.  Hearings,  when  held. 

174.  Secretary,  power  and  duties. 

175.  Commission  to  adopt  rules. 

176.  Record  of  all  hearings. 

177.  Subpoenas,  issuance  and  service. 

178.  Enforcement  of  orders. 

179.  Witness  fees,  how  paid. 

180.  Depositions. 

181.  Transcripts  of  evidence. 


WORKMEN'S  COMPENSATION  LAW.  188 

182.  Amendment  of  orders. 

183.  Reports  made  to  the  Governor. 

.  184.  Commission  to  furnish  blank  forma. 

§  169.  Appointed  by  Governor. — A  State  Industrial  Commis- 
sion is  hereby  created,  consisting  of  three  commissioners,  to  be 
appointed  by  the  Governor,  by  and  with  the  advice  and  con- 
sent of  the  Senate.  The  term  of  office  of  the  members  of  the 
Commission  shall  be  six  years,  except  that  the  term  of  office  of 
the  members  thereof  now  serving  shall  expire  on  January  1, 
1921,  1923,  and  1925,  respectively,  as  set  out  and  provided  in 
the  Commission  issued  by  the  Governor  to  such  members.  Suc- 
cessors of  said  office  shall  be  appointed  in  like  manner  for  a 
term  of  six  years.  Vacancies  shall  be  filled  in  like  manner  by 
the  appointment  for  the  unexpired  term 

Each  member  of  the  Commission  shall,  before  entering  upon 
the  duties  of  his  office,  execute  an  official  undertaking  in  the 
sum  of  ten  thousand  ($10,000.00)  dollars,  to  be  approved  by 
the  Governor  and  filed  in  the  office  of  Secretary  of  State.  The 
Governor  may  remove  any  Commissioner  for  inefficiency,  neg- 
lect of  duty,  or  misconduct  in  office,  giving  him  a  copy  of 
charges  and  opportunity  of  being  publicly  heard,  in  person  or 
by  counsel,  upon  not  less  than  ten  days'  notice.  If  such  Com- 
missioner be  removed  the  Governor  shall  file  in  the  office  of  the 
Secretary  of  State  a  complete  statement  of  all  charges  made 
against  him  and  a  complete  record  of  his  proceedings  and  his 
findings  thereon.  Each  Commissioner  shall  devote  his  entire 
time  to  the  duty  of  his  office  and  shall  not  hold  any  position  of 
trust  or  profit,  or  engage  in  any  occupation  or  business  inter- 
fering or  inconsistent  with  his  duties,  or  serve  on  or  under  any 
committee  of  a  political  party.  The  Commission  shall  have  an 
official  seal  which  shall  be  judicially  noticed.  The  salary  of 
each  of  the  Commissioners  shall  be  three  thousand  ($3,000.00) 
dollars  per  annum,  payable  monthly  as  salaries  of  other  State 
officers  are  paid,  and  shall  be  paid  out  of  the  State  Treasury, 
and  in  addition  to  the  said  sum,  each  Commissioner  shall  be 
allowed  all  traveling  expenses  incurred  by  him  when  away 


134  OKLAHOMA  OIL  AND  GAS  LAWS 

from  the  seat  of  government  in  the  discharge  of  his  official 
duties. 

Immediately  upon  the  passage  of  this  Act  the  State  Industrial 
Commission  shall  select  one  of  its  members  as  chairman  who 
shall  serve  as  chairman  of  said  board  until  the  first  Monday 
in  January,  1921,  or  until  his  successor  is  elected,  as  provided 
herein.  When  a  vacancy  exists  in  the  chairmanship  of  said 
board  it  shall  be  the  duty  of  said  board  to  elect  one  of  its 
members  as  chairman.  A  chairman  of  the  State  Industrial 
Commission  shall  be  regularly  elected  on  the  first  Monday  in 
January,  1921,  and  each  two  years  thereafter. 

(S.  L.  1919,  p.  24,  Sec.  15;  amending   S.    L.   1915,    p.    593, 
Sec.  1.) 

§  170.  Secretary  to  Commission. — The  Commission  may  em- 
ploy a  secretary,  an  actuary  and  such  inspectors  and  other 
assistants  as  it  may  deem  necessary  and  fix  their  compensation, 
both  the  number  and  compensation  of  such  employees  to  be 
subject  to  the  written  approval  of  the  Governor;  such  com- 
pensation shall  be  paid  on  vouchers  signed  by  at  least  two  of 
the  Commissioners  and  paid  out  of  the  appropriation  provided 
therefor.  The  members  of  the  Commission  and  all  assistants 
shall  be  entitled  to  receive  their  actual  necessary  expenses 
while  traveling  on  the  business  of  the  Commission.  Such  ex- 
penses shall  be  itemized  and  sworn  to  by  the  person  who  in- 
curred the  expenses,  and  allowed  by  the  Commission. 
(S.  L.  1915,  p.  594,  Sec.  2.) 

§  171.  Office  of  Commission. — The  Commission  shall  keep  and 
maintain  its  principal  office  in  the  city  of  Oklahoma  City,  in 
rooms  in  the  Capitol  assigned  by  the  Board  of  Affairs.  The 
office  shall  be  supplied  with  the  necessary  office  furniture,  sup- 
plies, books,  maps,  stationery,  telephone  connections  and  other 
necessary  appliance,  at  the  expense  of  the  State,  payable  in 
the  same  manner  as  other  expenses  of  the  Commission. 
(S.  L.  1915,  p.  595,  Sec.  3.) 

§  172.  Sessions — Quorum — Records.— The  Commission  shall 
be  in  continuous  session  and  open  for  transaction  of  business 


WORKMEN'S  COMPENSATION  LAW.  135 

during  all  business  hours  of  every  day  excepting  Sunday  and 
legal  holidays.  All  sessions  shall  be  open  to  the  public,  and 
may  be  adjourned  upon  entry  thereof  in  its  records,  without 
further  notice.  Whenever  convenience  of  parties  will  be  pro- 
moted or  delay  and  expense  prevented  the  Commission  may 
hold  session  anywhere  in  the  State.  Every  vote  and  official 
act  of  the  Commission  shall  be  entered  of  record,  and  the  record 
shall  contain  a  record  of  each  case  considered  and  the  award, 
decision  or  order  made  with  respect  thereto,  and  all  voting  shall 
be  by  the  calling  of  each  Commissioner's  name  by  the  secretary, 
and  each  vote  shall  be  recorded  as  cast.  A  majority  of  the 
Commission  shall  constitute  a  quorum.  A  vacancy  shall  not 
impair  the  right  of  the  remaining  Commissioners  to  exercise  all 
the  powers  of  the  full  Commission  so  long  as  the  majority 
remains. 

(S.  L.  1915,  p.  595,  Sec.  4.) 

§  173.  Hearings,  When  Held. — Any  investigation,  inquiry  or 
hearing  with  (which)  the  Commission  is  authorized  to  hold  or 
undertake,  may  be  held  or  taken  at  any  place  in  the  State  by 
or  before  any  Commissioner  and  the  award,  decision  or  order 
of  a  Commissioner,  when  approved  and  confirmed  by  the  Com- 
mission, and  ordered  filed  in  its  office  shall  be  deemed  to  be 
the  award,  decision  or  order  of  the  Commission.  Each  Commis- 
sioner shall,  for  the  purpose  of  this  act,  have  power  to  ad- 
minister oaths,  certify  to  official  acts,  take  depositions,  issue 
subpoenas,  compel  the  attendance  of  witnesses,  and  the  pro- 
duction of  books,  accounts,  papers,  records,  documents  and 
testimony.  The  Commission  may  authorize  any  inspector  to 
conduct  any  such  investigation,  inquiry  or  hearing,  in  which 
case  he  shall  have  the  power  of  a  Commissioner  in  respect 
thereof. 

(S.  L.  1916,  p.  596,  Sec.  5.) 

§  174.  Secretary,  Power  and  Duties. — The  secretary  of  the 
Commission  shall: 

1.  Maintain  a  full  and  true  record  of  all  proceedings  of  the 
Commission,  of  all  documents  or  papers  ordered  filed  by  the 


186  OKLAHOMA  OIL  AND  GAS  LAWS 

Commission,  of  decisions  or  orders,  made  by  a  Commissioner, 
and  of  all  decisions  or  orders  made  by  the  Commission  or  ap- 
proved and  confirmed  by  it,  and  ordered  filed,  and  he  shall  be 
responsible  to  the  Commission  for  the  safe  custody  and  preser- 
vation of  all  such  documents  at  its  office. 

2.  Have  power  to  administer  oaths  in  all  parts  of  the  State, 
so  far  as  the  exercise  of  such  power  is  properly  incident  to  the 
performance  of  his  duty,  or  that  of  the  Commission. 

3.  Designate,  from  time  to  time,  with  the  approval  of  the 
Commission,  one  of  the  clerks  appointed  by  the  Commission, 
to  exercise  the  powers  and  duties  of  the  secretary  during  his 
absence. 

4.  Under   the   direction   of  the   Commission,   have    general 
charge  of  its  office,  superintend  its  clerical  business,  and  per- 
form such  other  duties  as  the  Commission  may  prescribe. 

(S.  L.  1915,  p.  596,  Sec.  6.) 

§  175.  Commission  to  Adopt  Rules. — The  Commission  shall 
adopt  reasonable  rules,  not  inconsistent  with  this  Act,  regu- 
lating and  providing  for : 

1.  The  kind  and  character  of  notices,  and  the  service  thereof, 
in  case  of  accident  and  injury  to  employees. 

2.  The  nature  and  extent  of  the  proofs  and  evidence,  and 
the  method  of  taking  and  furnishing  the  same,  to  establish  the 
right  to  compensation. 

3.  The  forms  of  application  of  those  claiming  to  be  entitled 
to  compensation. 

4.  The  method  of  making  investigations,  physical  examina- 
tions and  inspections. 

5.  The  time  within  which  adjudication  and  awards  shall  be 
made. 

6.  The  conduct  of  hearing  investigations  and  inquiries. 

7.  The  giving  of  undertakings  by  all  subordinates  who  are 
empowered  to  receive  and  disburse  moneys,  to  be  approved  by 


WORKMEN'S  COMPENSATION  LAW.  187 

the  Attorney  General  as  to  forms  and  by  the  Governor  as  to 
sufficiency. 

8.  Carrying  into  effect  the  provisions  of  this  act. 
(S.  L.  1915,  p.  597,  Sec.  7.) 

§  176.  Record  of  All  Hearings. — The  Commission  or  Commis- 
sioner or  inspector  in  making  an  investigation  of  inquiry  or 
conducting  a  hearing  shall  be  required  to  preserve  a  complete 
record  of  all  oral  or  documentary  evidence  considered,  to  any 
part  of  such  evidence  any  party  affected  thereby  may  object, 
which  objection  shall  be  considered  and  passed  on  by  the  Com- 
mision  and  preserved  in  the  record. 
(S.  L.  1915,  p.  597,  Sec.  8.) 

§  177.  Subpoenas,  Issuance  and  Service. — A  subpoena  shall 
be  signed  and  issued  by  a  Commissioner,  an  inspector  or  by  the 
secretary  of  the  Commission,  and  may  be  served  by  any  per- 
son of  full  age  and  in  the  same  manner  as  a  subpoena  issued 
out  of  a  court  of  record.  If  a  person  fail,  without  reasonable 
cause,  to  attend  in  obedience  to  a  subpoena,  or  to  be  sworn  or 
examined  or  answer  a  question,  or  produce  a  book  or  paper,  or 
to  subscribe  and  swear  to  his  deposition  after  it  has  been  cor- 
rectly reduced  to  writing,  he  shall  be  guilty  of  a  misdemeanor. 
(S.  L.  1915,  p.  698,  Sec.  9.) 

§  178.  Enforcement  of  Orders. — In  case  of  disobedience  of 
any  person  to  comply  with  the  order  of  the  Commission,  or 
subpoena  issued  by  it.  or  one  of  its  members,  or  on  the  refusal 
of  a  witness  to  testify  to  any  matter  regarding  which  he  may 
be  lawfully  interrogated,  or  refuse  to  permit  an  inspection  as 
aforesaid,  the  county  judge  of  the  county  in  which  the  person 
resides,  or  of  the  county  in  which  such  hearing  is  being  con- 
ducted, on  application  of  any  member  of  the  board,  or  any 
inspector  or  examiner  appointed  by  it,  shall  compel  obedience 
by  attachment  proceedings  as  for  contempt,  as  in  the  case  of 
disobedience  of  requirements  of  subpoena  issued  from  such 
court  on  a  refusal  to  testify  therein. 

(S.  L.  1915.  p.  598.  Sec.  10.) 


138  OKLAHOMA  OIL  AND  GAS  LAWS 

§  179.  Witness  Fees,  How  Paid. — Each  witness  who  appears 
in  obedience  to  a  subpoena  before  the  Commission,  or  a  Com- 
missioner, inspector,  or  a  person  employed  by  the  Commission 
to  obtain  the  required  information,  shall  receive  for  his  attend- 
ance the  fees  and  mileage  provided  for  witnesses  in  civil  cases 
in  courts  of  record,  which  shall  be  audited  and  paid  out  of 
funds  appropriated  therefor  in  the  same  manner  as  other  ex- 
penses of  the  Commission.  A  witness  subpoenaed  at  the  in- 
stance of  a  party  other  than  the  Commission,  a  Commissioner, 
inspector,  or  person  acting  under  the  authority  of  the  Commis- 
sion, shall  be  entitled  to  fees  for  compensation  from  the  funds 
appropriated  therefor  if  the  Commission  certify  that  his  testi- 
mony was  material  to  the  matter  investigated,  but  not  other- 
wise. 

(S.  L.  1915,  p.  598,  Sec.  11.) 

§  180.  Depositions. — The  Commission  may  cause  depositions 
of  witnesses  residing  within  or  without  the  State  to  be  taken 
in  the  manner  prescribed  by  law  for  depositions  in  civil  actions 
in  courts  of  record. 

(S.  L.  1915,  p.  599,  Sec.  12.) 

§  181.  Transcripts  of  Evidence. — A  transcribed  copy  of  the 
testimony,  evidence  and  procedure  or  of  a  specific  part  thereof, 
or  of  the  testimony  of  a  particular  witness  or  of  a  specific 
part  thereof  on  any  investigation,  by  a  stenographer  appointed 
by  the  Commission,  being  certified  by  such  stenographer  to  be 
a  true  and  correct  transcript  thereof  and  to  have  been  carefully 
compared  by  him  as  (with)  the  original  notes,  may  be  received 
in  evidence  by  the  Commission  with  the  same  effect  as  if  said 
stenographer  were  present  and  testified  to  the  facts  so  certified, 
and  a  copy  of  said  transcript  shall  be  furnished  on  demand  to 
any  party  upon  payment  of  the  fee  provided  for  a  transcript 
of  similar  minutes  in  courts  of  record. 
(S.  L.  1915,  p.  599,  Sec.  13.) 

§  182.  Amendment  of  Orders. — The  power  and  jurisdiction  of 
the  Commission  over  each  case  shall  be  continuing,  and  it  may, 
from  time  to  time,  make  such  modification  or  change  with 


WORKMEN'S  COMPENSATION  LAW.  139 

respect  to  former  findings  or  orders  relating  thereto,  as  in  its 
opinion  may  be  just,  including  the  right  to  require  physical 
examination  as  provided  for  in  Section  9  of  Article  2  of  this 
Act,  and  subject  to  the  same  penalties  for  refusal. 
(S.  L.  1915,  p.  599,  Sec.  14.) 

§  183.  Reports  Made  to  the  Governor. — Annually  on  or  before 
the  first  day  of  January,  the  Commission  shall  make  a  report 
to  the  Governor,  to  be  by  him  transmitted  to  the  Legislature, 
which  shall  include  a  statement  of  the  number  of  awards  made 
by  it  and  the  causes  of  the  accidents  leading  to  the  injuries 
for  which  the  awards  were  made,  a  detailed  statement  of  the 
expenses  of  the  Commission,  together  with  any  other  matter 
which  the  Commission  deems  proper  to  report  to  the  Governor, 
including  any  recommendations  it  may  desire  to  make. 
(S.  L.  1915,  p.  599,  Sec.  15.) 

§  184.  Commission  to  Furnish  Blank  Forms. — The  Commis- 
sion shall  prepare  and  cause  to  be  distributed  so  that  the  same 
may  be  readily  available  blank  forms  of  application  for  com- 
pensation, notice  to  employees,  proofs  of  injury,  of  medical  or 
other  attendance  or  treatment,  of  employment  and  wage  earn- 
nings,  and  for  such  other  purposes  as  may  be  required.  In- 
sured employers  shall  constantly  keep  on  hand  a  sufficient  sup- 
ply of  such  blanks. 

(S.  L.  1915,  p.  600,  Sec.  16.) 

ARTICLE    V. 

MISCELLANEOUS  PROVISIONS. 

S  185.  Expenses  of  Commission. 

186.  Employer's  record  of  injuries. 

187.  Securing  information. 

188.  Employer's  records  subject  to  inspection. 

189.  Act  applicable  to  carriers. 

190.  False  statements — misdemeanor. 

191.  Limitations  of  time. 

192.  Commissioner  of  labor  to  assist. 

193.  Validity  of  sections  declared  independent. 

194.  Pending  actions  and  actions  for  death. 


140  OKLAHOMA  OIL  AND  GAS  LAWS 

§  185.  Expenses  of  Commission. — All  penalties  imposed  by 
tliis  Act  shall  be  applicable  to  the  expenses  of  the  Commission. 
When  collected  by  the  Commission  such  penalties  shall  be  paid 
into  the  State  Treasury,  and  be  thereafter  appropriated  by  the 
Legislature  for  the  purpose  prescribed  by  this  section. 
(S.  L.  1915,  p.  600,  Sec.  1.) 

§  186.  Employer's  Record  of  Injuries. — Every  employer  shall 
keep  a  record  of  all  injuries,  fatal  or  otherwise,  received  by  his 
employees  in,  the  course  of  their  employment.  Within  ten  days 
or  a  reasonable  time  thereafter,  after  the  occurrence  of  an  acci- 
dent resulting  in  personal  injury,  a  report  thereof  shall  be 
made  in  writing  by  the  employer  to  the  Commission  upon 
blanks  to  be  procured  from  the  Commission  for  that  purpose. 
Such  reports  shall  state  the  name  and  nature  of  the  business  of 
the  employer,  the  location  of  his  establishment  or  place  of  work, 
the  name,  address  and  occupation  of  the  injured  employee,  the 
time,  nature,  and  cause  of  the  injury  and  such  other  informa- 
tion as  may  be  required  by  the  Commission.  Any  employer  who 
refuses  or  neglects  to  make  a  report  as  required  by  this  section 
shall  be  guilty  of  a  misdemeanor,  punishable  by  a  fine  of  not 
more  than  five  hundred  dollars  ($500.00). 
(S.  L.  1915,  p.  600,  Sec.  2.) 

§  187.  Securing  Information. — Every  employer  shall  furnish 
the  Commission,  upon  request,  any  information  required  by  it 
to  carry  out  the  provisions  of  this  act.  The  Commission,  a 
commissioner,  or  any  inspector,  may  examine  under  oath  any 
employer,  officer,  agent,  or  employee.  An  employer  or  employee 
receiving  from  the  Commission  a  blank  with  directions  to  file 
the  same  shall  cause  the  same  to  be  properly  filled  out  so  as  to 
answer  fully  and  correctly  all  questions  therein,  or  if  unable 
to  do  so,  shall  give  a  good  and  sufficient  reason  for  such  failure. 
Answers  to  such  questions  shall  be  certified  under  oath  and  re- 
turned to  the  Commission  within  the  period  fixed  by  the  Com- 
mission therefor. 

(S.  L.  1915.  p.  601,  Sec.  3.) 


WORKMEN'S  COMPENSATION  LAW.  141 

§  188.  Employer's  Records  Subject  to  Inspection. — All  books, 
records  and  pay  rolls  of  the  employers  showing  or  reflecting 
in  any  way  upon  the  amount  of  wage  expenditures  of  such  em- 
ployers shall  always  be  open  for  inspection  by  the  Commission 
or  any  other  authorized  auditors,  accountants,  or  inspectors  for 
the  purpose  of  ascertaining  the  correctness  of  the  wage  expendi- 
ture and  number  of  men  employed  and  such  other  information 
as  may  be  necessary  for  the  purposes  and  uses  of  the  Commis- 
sion in  the  administration  of  this  Act.  No  person  shall  be  ex- 
cused from  testifying  or  from  producing  any  books  or  papers 
or  documents  in  any  investigation  or  inquiry,  by  or  upon  any 
hearing  before  the  Commission  or  any  Commissioner,  when 
ordered  to  do  so  by  the  Commission  or  its  secretary,  upon  the 
ground  that  the  testimony  or  pay  roll  or  other  competent  evi- 
dence required  of  him  may  tend  to  incriminate  him  or  subject 
him  to  penalty  or  forfeiture ;  but  no  person  shall  be  prosecuted, 
punished  or  subjected  to  any  penalty  or  forfeiture  for  or  on 
account  of  any  act,  transaction,  matter  or  thing  concerning 
which  he  shall  under  oath,  have,  by  order  of  the  Commission 
or  a  Commissioner  or  its  inspector  or  examiner,  testified  to  or 
produced  documentary  evidence  of;  provided,  however,  that 
no  person  so  testifying  shall  be  exempt  from  prosecution  or 
punishment  for  any  perjury  committed  by  him  in  his  testimony. 
(S.  L.  1915,  p.  601,  Sec.  4.) 

§  189.  Act  Applicable  to  Carriers. — That  Section  5  of  Article 
5  of  Chapter  246,  of  the  Session  Laws  of  the  State  of  Oklahoma, 
1915,  be  and  the  same  is  hereby  repealed. 
(S.  L.  1919,  p.  24,  Sec.  13.) 

§  190.  False  Statements — Misdemeanor. — If  for  the  purpose 
of  obtaining  any  benefit  or  payment  under  the  provisions  of 
this  Act,  either  for  himself  or  any  other  person,  any  person 
wilfully  makes  a  false  statement  or  representation,  he  shall  be 
guilty  of  a  misdemeanor. 

(S.  L.  1915,  p.  602,  Sec.  6.) 

§  191.  Limitations  of  Time. — No  limitation  of  time  provided 
hi  this  Act  shall  run  as  against  any  person  who  is  mentally 


142  OKLAHOMA  OIL  AND  GAS  LAWS 

incompetent  or  a  minor  dependent  so  long  as  he  has  no  com- 
mittee, guardian  or  next  friend. 
(S.  L.  1915,  p.  602,  Sec.  7.) 

§  192.  Commissioner  of  Labor  to  Assist. — The  Commissioner 
of  Labor  shall  render  to  the  Commission  any  proper  aid  and 
assistance  by  the  department  of  labor  as  in  his  judgment  does 
not  interfere  with  the  proper  conduct  of  such  department. 
(S.  L.  1915,  p.  602,  Sec.  8.) 

§  193.  Validity  of  Sections  Declared  Independent. — If  any 
section  or  provision  of  this  Act  be  decided  by  the  courts  to 
be  unconstitutional  or  invalid,  the  same  shall  not  effect  the 
validity  of  this  act  as  a  whole  or  any  part  thereof  other  than 
the  part  so  decided  to  be  unconstitutional  or  invalid. 
(S.  L.  1915,  p.  602,  Sec.  9.) 

§  194.  Pending  Actions  and  Actions  for  Death. — This  Act 
shall  not  affect  any  action  pending  or  cause  of  action  existing 
or  which  has  or  may  hereafter  accrue  to  the  dependents  or 
other  legal  representatives  of  an  injured  employee  in  case  death 
results  from  the  injury  after  he  has  been  awarded  compensa- 
tion under  the  provisions  of  this  Act;  provided,  that  for  any 
injury  for  which  compensation  is  not  provided  under  the  pro- 
visions of  this  Act  the  injured  party  shall  have  the  right  of 
action  in  the  courts  for  his  damage  on  account  of  such  injury. 
(S.  L.  1919,  p.  23,  Sec.  12;  amending  S.  L.  1915,  p.  602, 
Sec.  10.) 

ARTICLE    VI. 

DEATH. 

§  195.  Death  or  injury  resulting  in  death. 

196.  Actions  for  injuries. 

197.  Act,  when  effective. 

§  195.  Death  or  Injury  Resulting  in  Death. — It  is  not  in- 
tended that  any  of  the  provisions  of  this  Act  shall  apply  in 
cases  of  accidents  resulting  in  death  and  no  right  of  action  for 


WORKMEN'S  COMPENSATION  LAW.  148 

recovery  of  damages  for  injuries  resulting  in  death  is  intended 
to  be  denied  or  affected. 

(S.  L.  1915,  p.  603,  Sec.  1.) 

§  196.  Actions  for  Injuries. — The  right  of  action  to  recover 
damages  for  personal  injuries  not  resulting  in  death  arising 
and  occurring  in  hazardous  employments  as  herein  defined, 
except  the  right  of  action  reserved  to  an  injured  employee  or 
his  dependents  or  other  legal  representatives  in  Section  2  of 
Article  2  and  Section  10  of  Article  5  of  this  Act,  is  hereby 
abrogated,  and  all  jurisdiction  of  the  courts  of  this  State  over 
such  causes,  except  as  to  the  cause  reserved  to  such  injured 
employees  or  their  dependents  or  other  legal  representatives 
in  Section  2  of  Article  2  and  Section  10  of  Article  5  of  this  Act 
is  hereby  abolished. 

(S.  L.  1919,  p.  24,  Sec.  14;  amending    S.    L.    1915,    p.    603, 
Sec.  2.) 

§  197.  Act,  When  Effective.— This  Act  shall  take  effect  July 
1,  1915,  provided  that  the  application  of  this  Act  as  be- 
tween employers  and  employees  and  the  payment  of  compensa- 
tion for  injuries  to  employees  shall  take  effect  September  1, 
1915. 

(S.  L.  1915,  p.  603,  Section  3.) 


CHAPTER    XXI. 

FORFEITED  LEASE  TO  BE  RELEASED  FROM  RECORD 

§  198.  Forfeiture  of  Lease — Release  from  Record — Penalty.— 
When  any  lease  on  land  heretofore  or  hereafter  taken  shall 
have  become  forfeited,  it  shall  be  the  duty  of  the  lessee,  his,  her, 
or  their  heirs,  successors,  assigns  or  legal  representatives,  with- 
in sixty  (60)  days  from  the  date  this  Act  shall  take  effect,  if 
such  forfeiture  occurs  prior  thereto,  and  within  sixty  (60) 
days  from  date  of  forfeiture  of  any  and  all  other  leases,  ,to 
have  such  leases  released  from  record  in  the  county  where  such 
land  is  situated,  without  cost  to  the  owner  or  owners  thereof; 
and  upon  failure  to  make  such  release,  the  owner  or  owners 
of  the  land  under  lease  may  notify  in  writing  the  holder  of  the 
record  title  to  such  lease,  that  the  same  has  become  forfeited 
and  demand  a  release  of  record  of  such  lease,  as  herein  pro- 
vided ;  and  if  the  owner  or  holder  of  such  lease,  or  the  officer, 
agent,  or  other  persons  whose  duty  it  is  to  release  such  lease, 
shall  fail  or  neglect  to  release  same  within  thirty  (30)  days 
after  demand  to  release  has  been  made  in  writing,  he  shall  be 
guilty  of  a  misdemeanor  and  upon  conviction  shall  be  punished 
by  a  fine  of  not  exceeding  one  hundred  dollars.1 


1The   original   bill   contains   the   following:      "I   did  not  approve 
this  bill,  but  detained  it  for  over  five  days.    I  doubt  its  validity  as 
being  in  violation  of  the  Constitution.     See  Campbell  v.  State,   23 
Okla.  109.     R.  L.  Williams,  Governor." 
(S.  L.  1915,  p.  605,  Sec.  1.) 


144 


FORMS.  145 

NO.   1.    OIL  AND   GAS    LEASE. 
(PRODUCER'S   88— OKLAHOMA  FORM.) 

,  Made  and  entered  Into  the day  of 

19 ,  by  and  between 

of party  of  the  first  part,  hereinafter 

called  lessor  ( whether  one  or  more) ,  and 

party  of  the  second  part,  hereinafter  called  lessee. 

WITNESSETH,  That  the  said  lessor,  for  and  in  consideration  of 

DOLLARS,  cash  in  hand  paid,  receipt  of 

which  is  hereby  acknowledged  and  of  the  covenants  and  agreements 
hereinafter  contained  on  the  part  of  lessee  to  be  paid,  kept  and  per- 
formed, has  granted,  demised,  leased  and  let  and  by  these  presents 
does  grant,  demise,  lease  and  let  unto  the  said  lessee,  for  the  sole 
and  only  purpose  of  mining  and  operating  for  oil  and  gas,  and  laying 
pipe  lines,  and  building  tanks,  powers,  stations  and  structures 
thereon  to  produce,  save  and  take  care  of  said  products,  all  that  cer- 
tain tract  of  land  situate  in  the  County  of 

State  of  Oklahoma,  described  as  follows,  to-wit:  (Here  describe 
land.) 

It  is  agreed  that  this  lease  shall  remain  in  force  for  a  term  of 

years  from  this  date,  and  as  long  thereafter  as 

oil  or  gas,  or  either  of  them,  is  produced  from  said  land  by  the  lessee. 

In  consideration  of  the  premises  the  said  lessee  covenants  and 
agrees: 

1st.  To  deliver  to  the  credit  of  lessor,  free  of  cost,  in  the  pipe  line 
to  which  he  may  connect  his  wells,  the  equal  one-eighth  part  of  all 
oil  produced  and  saved  from  the  leased  premises. 

2d.     To    pay    the    lessor DOLLARS, 

each  year  in  advance,  for  the  gas  from  each  well  where  gas  only  is 
found,  while  the  same  is  being  used  off  the  premises,  and  lessor  to 
have  gas  free  of  cost  from  any  such  well  for  all  stoves  and  all  inside 
lights  in  the  principal  dwelling  house  on  said  land  and  during  the 
same  time  by  making  his  own  connections  with  the  wells  at  his  own 
risk  and  expense. 

3d.  To  pay  lessor  for  gas  produced  from  any  oil  well  and  used  on 

the  premises  at  the  rate  of DOLLARS 

per  year,  for  the  time  during  which  gas  shall  be  used,  said  payments 
to  be  made  each  three  months  in  advance. 

If  no  well  be  commenced  on  said  land  on  or  before  the 

day  of  19 this  lease  shall 

terminate  as  to  both  parties,  unless  the  lessee  on  or  before  that  date 
shall  pay  or  tender  to  the  lessor,  or  to  the  lessor's  credit  in  the 


146  OKLAHOMA  OIL  AND  GAS  LAWS 

Bank  at  

or  its  successors,  which  shall  continue  as  the  depository  regardless 

of  changes  in  the  ownership  of  said  land,  the  sum  of 

DOLLARS,  which  shall  operate  as  a  rental  and  cover  the  privilege  of 

deferring  the  commencement  of  a  well  for months 

from  said  date.  In  like  manner  and  upon  like  payment  or  tenders  the 
commencement  of  a  well  may  be  further  deferred  for  like  period  of  the 
same  number  of  months  successively.  And  it  is  understood  and  agreed 
that  the  consideration  first  recited  herein,  the  down  payment,  covers 
not  only  the  privileges  granted  to  the  date  when  said  first  rental  is 
payable  as  aforesaid,  but  also  the  lessee's  option  of  extending  that 
period  as  aforesaid,  and  any  and  all  other  rights  conferred. 

Should  the  first  well  drilled  on  the  above  described  land  be  a  dry 
hole,  then,  and  in  that  event,  if  a  second  well  is  not  commenced  on 
said  land  within  twelve  months  from  the  expiration  of  the  last  rental 
period  which  rental  has  been  paid,  this  lease  shall  terminate  as  to 
both  parties,  unless  the  lessee  on  or  before  the  expiration  of  said 
twelve  months  shall  resume  the  payment  of  the  rentals  in  the  same 
amount  and  in  the  same  manner  as  hereinbefore  provided.  And  it  is 
agreed  that  upon  the  resumption  of  the  payment  of  rentals  as  above 
provided  that  the  last  preceding  paragraph  hereof  governing  the  pay- 
ment of  rentals  and  the  effect  thereof,  shall  continue  in  force  just  as 
though  there  had  been  no  interruption  in  the  rental  payments. 

If  said  lessor  owns  a  less  interest  in  the  above  described  land  than 
the  entire  and  undivided  fee  simple  estate  therein,  then  the  royalties 
and  rentals  herein  provided  shall  be  paid  the  lessor  only  in  the  pro- 
portion which  his  interest  bears  to  the  whole  and  undivided  fee. 

Lessee  shall  have  the  right  to  use,  free  of  cost,  gas,  oil  and  water 
produced  on  said  land  for  its  operation  thereon,  except  water  from  wells 
of  lessor. 

When  requested  by  lessor,  lessee  shall  bury  its  pipe  lines  below 
plow  depth. 

No  well  shall  be  drilled  nearer  than  200  feet  to  the  house  or  barn 
now  on  said  premises,  without  the  written  consent  of  the  lessor. 

Lessee  shall  pay  for  damages  caused  by  its  operations  to  growing 
crops  on  said  lands. 

Lessee  shall  have  the  right  at  any  time  to  remove  all  machinery  and 
fixtures  placed  on  said  premises,  including  the  right  to  draw  and 
remove  casing. 

If  the  estate  of  either  party  hereto  is  assigned,  and  the  privilege  or 
assigning  in  whole  or  In  part  is  expressly  allowed — the  covenants 
hereof  shall  extend  to  their  heirs,  executors,  administrators,  succes- 
sors or  assigns,  but  no  change  in  the  ownership  of  the  land  or  assign- 


FORMS.  147 

meat  of  rentals  or  royalties  shall  be  binding  on  the  lessee  until  after 
the  lessee  has  been  furnished  with  a  written  transfer  or  assignment 
or  a  true  copy  thereof;  and  it  Is  hereby  agreed  that  In  the  event  this 
lease  shall  be  assigned  as  to  a  part  or  as  to  parts  of  the  above  described 
lands  and  the  assignee  or  assignees  of  such  part  or  parts  shall  fail  or 
make  default  in  the  payment  of  the  proportionate  part  of  the  rents 
due  from  him  or  them,  such  default  shall  not  operate  to  defeat  or  affect 
this  lease  insofar  as  it  covers  a  part  or  parts  of  said  lands  upon  which 
the  said  lessee  or  any  assignee  thereof  shall  make  due  payment  of  said 
rental. 

Lessor  hereby  warrants  and  agrees  to  defend  the  title  to  the  lands 
described,  and  agrees  that  the  lessee  shall  have  the  right  at  any  time 
to  redeem  for  lessor,  by  payment,  any  mortgages,  taxes  or  other  liens 
on  the  above  described  lands,  in  the  event  of  default  of  payment  by 
lessor,  and  be  subrogated  to  the  rights  of  the  holder  thereof. 

IN  TESTIMONY  WHEREOF,  we  sign,  this  the day  of 

19 

(Seal) 

(Seal) 

(For  acknowledgment  see  Form  11.) 

NO.  2.    CONTRACT  FOR  OIL  AND  GAS  LEASE. 

KNOW  ALL  MEN  BY  THESE  PRESENTS:  That  for  and  in  con- 
sideration of Dollars  ($ ), 

to  us  in  hand  paid  by ,  we  hereby 

agree  that  if pay  to  us  the  further  sum  of 

Dollars  within days  from  date 

hereof,  we  will,  upon  demand,  execute  and  deliver  to  the  said 
a  lease  of  the  oil  and  gas  on  the  fol- 
lowing described  tract  of  land,  for  the  purpose  of  operating  for  oil 
and  gas,  with  the  right  to  use  water  therefrom,  and  all  rights  and 
privileges  necessary  and  convenient  for  said  operation,  and  the  trans- 
portation of  oil,  gas  and  water,  and  waive  all  rights  to  claim  or  hold 
any  of  the  property  or  improvements  placed  or  erected  on  the 
premises,  which  said  property  or  improvements  may  be  removed  at 
any  time  by  the  lessee. 

Said  tract  of  land  being  situated  in  the  County  of 

and  State  of  Oklahoma,  and  is  described  as  follows,  to-wit:  (Here 

describe),  containing acres,  more  or  less,  but  no  wells 

to  be  drilled  within feet  of  present  buildings,  unless 

both  parties  consent  thereto. 

Said  lease  to  be  for  the  term  of years,  and  as  much 

longer  as  oil  or  gas  is  found  in  paying  quantities  thereon,  upon  the 
following  rents:  The of  all  petroleum  or  oil  produced 


148  OKLAHOMA  OIL  AND  GAS  LAWS 

and  saved  from  the  premises,  to  be  delivered  free  of  cost  to  our  credit 

in  pipe  lines,  and  at  the  rate  of Dollar* 

p«r  year  for  each  gas  well,  go  long  as  it  shall  produce  gas  in  sufficient 
quantities  to  justify  tht  lessee  in  marketing  the  same. 

Said  lease  is  given  upon  the  condition  that  if  a  well  is  not  com- 
pleted on  said  premises  within from  the  date  hereof, 

then  the  same  shall  be  and  become  null  and  void,  unless  the  lessee 

within  each  and  every after  the  expiration 

of  the  time  above  mentioned  for  the  completion  of  a  well,  elects  to 

and  does  pay  to  us  the  sum  of Dollars,  until 

it  is  completed,  which  payments,  if  the  lessee  elects  to  pay  the  same, 
may  be  paid  directly  to  us  or  may  be  deposited  to  our  credit,  or  in 

case  of  our  death,  to  the  credit  of  our  estate  in  the 

Bank  of and  the 

terms  of  this  contract  and  also  of  said  lease  shall  be  made  to  extend 
and  apply  to  the  heirs,  executors,  administrators  and  assigns  of  the 
parties  respectively. 

Witness  our  hands  and  seals  this  the day  of ,1922. 

(Seal) 

(For  acknowledgment  see  Form  11.) 

NO.  3.     ASSIGNMENT  OF  OIL  AND  GAS  LEASE. 

WHEREAS,  on  the day  of , 

192 ,  a  certain  oil  and  gas  mining  lease  was  made  and  entered  into 

between Lessor 

and  Lessee 

covering  the  following  described  land  in  the  County  of 

and  State  of to-wit:     (Here  describe  land.) 

Said  lease  being  recorded  in  the  office  of  the  Register  of  Deeds  in 
and  for  said  County  in  book ,  page and 

WHEEEAS,  The  said  lease  and  all  rights  thereunder  or  incident  thereto 
are  now  owned  by 

Now,  THEBEFOBE,  For  and  in  consideration  of  One  Dollar  (and  other 
good  and  valuable  considerations),  the  receipt    of    which    is    hereby 

acknowledged,  the  undersigned,  the  present  owner of  the  said 

lease  and  all  rights  thereunder  or  incident   there   to,    do hereby 

bargain,  sell,  transfer,  assign  and  convey  unto 

of right,  title  and  interest  of  the 

original  lease  and  present  owner in  and  to  the   said    lease    and 

rights  thereunder  in  so  far  as  it  covers  the 

together  with  all  personal  property  used  or  obtained  in  connection 


FORMS.  149 

therewith   to and 

heirs,  successors  and  assigns. 

And  for  the  same  consideration,  the  undersigned  for 

and heirs,  successors,  and  representatives,  do. . : . . 

covenant  with  the  said  assignees, heirs,  successors  or  assigns, 

that , the  lawful  owner of  the 

said  lease  and  rights  and  interests  thereunder  and  of  the  personal 
property  thereon  or  used  in  connection  therewith;  that  the  under- 
signed  good  right  and  authority  to  sell  and  convey  the 

same,  and  that  said  rights,  interest  and  property  are  free  and  clear 
from  all  lines  and  encumbrances,  and  that  all  rentals  and  royalties 
due  and  payable  thereunder  have  been  duly  paid. 

IN  WITNESS  WHEREOF,  The  undersigned  owner and  assignor 

signed  and  sealed  this  instrument  this day  of 

,  19 

(Seal) 

(Seal) 

(Seal) 

(For  acknowledgment  see  Form  11.) 

NO.  4.     RELEASE  OF  OIL  AND  GAS  LEASE. 

WHEREAS,  a  certain  Oil  and  Gas  Mining  Lease,  dated  the 

day  of ,  1922,  given  by 

Lessor,  to , Lessee,  and  covering  the 

following  described  lands,  to- wit:     (Here  describe  lands),    County  of 

,  and  State  of  Oklahoma,  and  recorded  on  the 

day  of ,  1922,  in 

Book at  page of  the  records  of  said  County,  and 

WHEBEAS,  by  virtue  of  an  assignment  of  said  Oil  and  Gas  Mining 

Lease,  as  above  described,  the  same  is  now  owned  by 

in  so  far  as  it  covers  the  (Here  describe  lands  cov- 
ered by  assignment). 

Now,  THEREFORE,  KNOW  ALL  MEN  BY  THESE  PRESENTS:    That  the  said 

does  hereby  cancel,  release,  relinquish 

and  surrender  all  of right,  title  and  interest  in  and  to  the 

said  Oil  and  Gas  Mining  Lease  in  so  far  as  it  covers  the  lands  last 
above  described. 

IK  WITNESS  WHEREOF hereunto  set hand  —  and  seal 

this day  of 1922. 

(Seal) 

(Seal) 

(For  acknowledgment  see  Form  11.) 


150  OKLAHOMA  OIL  AND  GAS  LAWS 

NO.  5.  SALE  OF  OIL  AND  GAS  ROYALTY. 

KNOW  ALL  MEN  BY  THESE  PRESENTS:     That 

of ,  for  and  in  consideration  of  the 

sum  of Dollars,  ($ ), 

receipt  of  which  is  hereby  acknowledged,  ha granted,  bargained, 

sold,  conveyed  and  set  over,  and  do by  these  presents  grant,  bar- 
gain, sell,  convey  and  set  over  unto 

heirs,  successors  and  assigns  all  the  following  property,  estate,  right, 
title  and  interest  therein,  to-wit: 

An   undivided interest   in   all   of   the   oil,   gas,  coal 

and  other  minerals  now,  or  at  any  time  hereafter,  lying  in  or  under 
the  following  described  tract  of  land  (or  any  part  thereof),  situated 

in  the  County  of State  of 

described  as  follows,  to-wit: 

(Here    describe    lands) 

Also   an  undivided interest  in   all   my   right,   title   and 

estate  under  and  by  virtue  of  any  oil  and  gas  mining  lease,  or  other 
mineral  lease,  now  or  hereafter  existing  upon  said  premises,  or  any 
part  thereof,  including  all  rents  and  royalties  accrued;  and  also 
the  perpetual  and  irrevocable  right,  privilege  and  easement  of  enter- 
ing upon  said  lands  and  searching  for,  drilling  wells,  sinking  shafts, 
mining  digging,  extracting,  taking  and  carrying  away  all  of  the  oil, 
gas  coal  and  other  minerals  in  or  under  said  lands,  or  that  may  be 
found  therein  or  thereunder;  and  also  the  right  to  possession  and 
use  of  so  much  of  said  premises  at  all  times  as  may  be  necessary  to 
the  practical  carrying  out  of  the  purposes  and  provisions  of  this  grant. 

To  Have  and  to  Hold-,  all  the  aforegranted  estate,  property  and 
easement,  together  with  all  and  singular  the  rights,  privileges  and 
hereditaments  thereunder  belonging  or  appertaining,  unto  the  said 

heirs,  successors  and  assigns,  in  fee 

simple  forever. 

And  the  said 

for sel heirs,   successors 

and   personal    representatives,    do hereby   covenant   and 

agree  to  and  with  said 

heirs,  successors  and  assigns,  that  at  the  delivery 

of  these  presents lawfully  seized  in 

own  right  of  an  absolute  and  indefeasable  estate  of  inheritance  in  fee 
simple  of,  in  and  to  all  and  singular  the  aforesaid  premises  and 

property;    that ha good  right  to  sell  and  convey  the 

same,  and  warrants  the  same  to  be  free,  clear,  discharged  and  unen- 
cumbered of  and  from  all  former  grants,  titles,  charges,  judgments, 


FORMS.  151 

taxes,  assessments  and  encumbrances  of  whatsoever  kind  and  nature, 
except  an  oil  and  gas  leasehold  estate,  hereinafter  referred  to,  which 

Is  recorded  In  the  office  of  the  County  Clerk  of 

County,    

It  Is  hereby  expressly  declared  that  whereas  the  land,  particularly 
described  In  this  conveyance  Is  understood  to  be  subject  to  an  oil  and 

gas  mining  lease  In  favor  of 

it  Is  intended  that  said  outstanding  lease  is  fully  embraced  in  the 
general  terms  of  this  conveyance,  so  as  to  pass  to,  and  vest  in  said 

a Interest. 

not  only  in  the  oil  and  gas,  but  also  all  rents  and  royalties  therein 

reserved  to  the  lessor,  precisely  as  if  said 

had  been  at  the  date  of  making  of 

said  lease,  the  owner  in  fee  of  a interest  in  and  to 

the  lands  described,  and  himself  one  of  the  lessors  therein. 

And  it  Is  hereby  further  expressly  declared  that  it  Is  the  true  intent 

and  purpose  of  this  conveyance  to  pass  to  and  vest  in  the  said 

an  undivided 

interest  in  all  the  mineral  and  mineral  rights  in  the  land  first  described 
herein,  or  that  at  any  time  may  be  found  therein  or  thereunder,  and  all 
grantor's  rights  to  operate  for  said  minerals,  and  deal  and  contract 
with  regard  thereto,  including  the  leasing  thereof,  as  fully  to  all 

intent  and  purpose  as  if  the  said was 

the  absolute  owner  of  the  entire  title  and  estate  in  said  lands. 


IN  WITNESS  WHEBEOF ha set hand. 

this day  of ,  192. . 


(For  acknowledgment  see  Form  11.) 

NO.  6.     ASSIGNMENT  AND  CONVEYANCE  OF  OIL  AND  QAS 

ROYALTY. 

KNOW  ALL  MEN  BY  THESE  PRESENTS:     That 

for  and  in  consideration  of  the  sum  of 

Dollars    ($ ),   receipt  of  which   is  hereby  acknowledged, 

ha assigned,  transferred,  sold,  conveyed  and  set  over,  and  do 

by  these  presents  assign,  transfer,  sell,  convey  and  set  over  to 

heirs,  successors  and 

assigns  (hereinafter  referred  to  as  grantee),  all  the  following  described 
property,  estate,  right,  title  and  interest,  to-wit: 


152  OKLAHOMA  OIL  AND  GAS  LAWS 

An   undivided . interest 

in  all  of  the  oil  and  gas  now,  or  at  any  time  hereafter,  lying  in  or  under 
the  following  described  tract  of  land  (or  any  part  thereof) :  (Here  de- 
scribe lands),  situated  in  the  County  of 6tate  of 

Oklahoma,  and  also  all  my  rights,  interest  and  estate  under  and  by 
virtue  of  any  oil  and  gas  mining  lease  or  other  mineral  lease  now 
or  hereafter  existing  upon  said  premises,  or  any  part  thereof,  including 
all  rents  and  royalties  accrued  and  to  accrue;  and  also  all  my  right 
to  the  privilege  or  easement  of  entering  upon  said  lands  and  search- 
ing for,  drilling  wells,  extracting,  taking  and  carrying  away  all  of  the 
oil  and  gas,  in  or  under  said  lands,  or  that  may  be  found  therein  or 
thereunder;  and  also  all  my  right  to  possession  and  use  of  BO  much 
of  said  premises  at  all  times  as  may  be  necessary  to  the  practical 
carrying  out  of  the  purposes  and  provisions  of  this  grant. 

To  HAVE  AND  TO  HOLD,  All  the  above  assigned  estate,  property  and 
easements,  together  with  all  and  singular  the  rights,  privileges  and 
hereditaments  thereunder  belonging  or  appertaining,  unto  the  said 

heirs,  successors  and  assigns, 

in  fee  simple  forever. 

It  is  hereby  expressly  declared  that  whereas  the  land,  particularly 
described  in  this  conveyance,  is  understood  to  be  subject  to  an  oil  and 

gas  mining  lease  in  favor  of 

it  is  intended  that  such  interest  as  assignor  herein  has  a  said  out- 
standing lease  is  fully  embraced  in  the  general  terms  of  this  convey- 
ance, so  as  to  pass  to,  and  vest  in  grantee  herein 

interest,  not  only  in  the  oil  and  gas,  but  also  all  rents  and  royalties 
therein  reserved  to  the  lessor,  precisely  as  if  grantor  herein  had  been 

at  the  date  of  the  making  of  said  lease  the  owner  in  fee  of 

interest  in  and  to  the  lands  described. 

PROVIDED:     

And  it  is  hereby  further  expressly  declared  that  it  is  the  true  intent 
and  purpose  of  this  conveyance  to  pass  to  and  vest  in  the  grantee 

herein,  an  undivided interest  in  all  the  oil  and 

gas  rights  in  the  land  first  described  herein,  or  that  at  any  time  be 
found  therein  or  thereunder  (whether  described  as  royalty  or  other- 
wise) and  all  grantor's  rights  to  operate  for  said  minerals,  and  deal 
and  contract  with  regard  thereto. 

IN  WITNESS  WHEREOF,  the  grantor herein  ha set 

hand. ....  .this day  of... ,  192.... 

(Seal) 

(Seal) 

(Seal) 

(For  acknowledgment  see  Form  11.) 


FORMS.  158 

No.  7.     MINERAL  DEED. 
StaU  of  Oklahoma,  County  of 

KNOW  ALL  MEN  BY  THESE  PRESENTS:     That 

of County,   Oklahoma. 

for  and  in  consideration  of  the  sum  of Dollars 

(? )  cash  in  hand  paid  by 

hereinafter  called  Grantee the  receipt  of  which  is  hereby  acknowl- 
edged, have  granted,  sold,  conveyed,  assigned  and  delivered  and  by 
these  presents  do  grant,  sell,  convey,  assign  and  deliver  unto  the  said 

Grantee an  undivided interest  in  and  to  all  of 

the  oil,  gas  and  other  minerals  in  and  under,  and  that  may  be  pro- 
duced from  the  following  described  land  situate  in 

County,  Okla.,  to-wit: 

Together  with  the  right  of  ingress  and  egress  at  all  times  for  the 
purpose  of  mining,  drilling  and  exploring  said  land  for  oil,  gas  and 
other  minerals,  and  removing  the  same  therefrom. 

Said  land  being  now  under  an  oil  and  gas  lease  executed  in  favor  of 

it  is  understood  and  agreed  that  this 

sale  is  made  subject  to  the  terms  of  said  lease,  but  covers  and  includes 

of  all  of  the  oil  royalty  and  gas  rental  or  royalty  due 

and  to  be  paid  under  the  terms  of  said  lease. 

It  is  understood  and  agreed  that of  the  money  rentals 

which  may  be  paid  to  extend  the  term  within  which  a  well  may  be 
begun  under  the  terms  of  said  lease  is  to  be  paid  to  the  said  Grantee. . 
and  in  event  that  the  above  described  lease  for  any  reason  becomes 

cancelled  or  forfeited,  then  and  in  that  event  an  undivided 

of  the  lease  interests  and  all  future  rentals  on  said  land  for  oil,  gas 

and  other  mineral  privileges  shall  be  owned  by  said  Grantee, 

owning of  all  oil,  gas  and  other  minerals  In 

and  under  said  lands,  together  with interests 

in  all  future  rents. 

To  have  and  to  hold  the  above  described  property  together  with  all 
and  singular  the  rights  and  appurtenances  thereto  in  anywise  belonging 

unto  the  said  Grantee herein, heirs  and  assigns 

forever  and do  hereby  bind heirs, 

executors  and  administrators  to  warrant  and  forever  defend  all  and 
singular  the  said  property  unto  the  said  Grantee. . .  .herein, 


154  OKLAHOMA  OIL  AND  GAS  LAWS 

heirs  and  assigns  against  every  person  whomsoever  law 

fully  claiming  or  to  claim  the  same  or  any  part  thereof. 

Witness hand this  the day  of 

19 . .  Witnesses : 


(For  acknowledgment  see  Form  11.) 

NO.  8.     DRILLING  CONTRACT. 

THIS  AGBEEMENT,  made  this day  of 

A.  D.,  192 ,  between of 

part of  the  first  part,  and 

party  of  the  second  part. 

WJTNESSETH:   That  said  part of  the  first  part  hath  covenanted 

and  agreed  with  said  party  of  the  second    part,    his    successors    and 

assigns,  that  said  part of  the  first  part  will  drill  for  said  party  of 

the  second  part  a  certain  well  for  the  purpose  of  obtaining  petroleum 

oil  or  natural  gas,  to  be  known  as  well  No on  the  farm  of 

Located  in   Section 

Township Range County   of 

State  of 

The  material,  machinery  and  appliances  necessary  for  drilling  and 
completing  said  well  shall  be  furnished,  and  the  work  of  drilling  the 
same  shall  be  done  in  the  manner  hereinafter  specified,  viz.: 

A  complete  carpenter's  rig  of  good  quality  (including  wooden  con- 
ductor) to  be  furnished  by  the  party  of  the  second  part  (and  all  repairs 
on  same  while  the  well  is  being  drilled,  shall  be  made  by  and  at  the 
expense  of  said  part of  the  first  part.) 

All  casing  to  be  furnished  by  party  of  second  part. 

Boiler,  engine,  belt,  bull  rope,  steam  and  water  pipe  and  connections 
to  be  furnished  at  the  well  by  the  part of  the  first  part. 

The  expense  of  fitting  up  and  connecting  same  to  be  borne  by  party 
of  the  first  part. 

Fuel  to  be  furnished  at  the  expense  of  the of  the 

part. 

Water  to  be  furnished  at  the  expense  of  the  part of  the 

part. 

Oil  sayer  and  steel  measuring  line  at  expense  of  the  part of  the 

first  part 


FORMS.  155 

All  machinery,  material  and  appliances  furnished  by  said  party  of 
the  second  part  shall  at  the  completion  or  abandonment  of  said  well 
be  returned  to  said  party  of  the  second  part  in  as  good  condition  as 

when  received  by  said  part of  the  first  part,  ordinary  wear  and 

action  of  the  elements  alone  excepted. 

The  said  part of  the  first  part  further  agrees  to  pay  all  expenses 

and  furnish  everything  necessary  to  drill  and  complete  said  well 
except  the  articles  and  appliances  herein  specifically  mentioned  to  be 
furnished  by  the  party  of  the  second  part. 

The  said  well,  unless  sooner  abandoned  by  direction  of  the  party  of 

the  second  part,  is  to  be  drilled 

the  consideration  for  which  shall  be per  foot. 

All  fresh  water  shall  be  cased  off  with  casing  of  such  diameter  as 
may  be  specified  by  party  of  second  part,  and  all  salt  water  cased  off 
with  casing  of  such  diameter  as  may  be  specified  by  party  of  second 
part. 

When  the  said  well  approaches  the  oil  or  gas   bearing   sand,    the 

part of  the  first  part  shall  notify  the  party  of  the  second  part,  or 

its  agent  in  charge  of  the  farm  or  lease,  and  thereupon  any  further 
drilling  and  casing  into  or  through  the  sand  shall  be  as  requested  by 
the  said  party  of  the  second  part,  or  its  agent,  in  charge  of  the  farm 
or  lease,  but  the  work  in  connection  therewith  shall  be  done  by  and 
under  the  direction  and  at  the  risk  of  the  part of  the  first  part. 

If  oil  or  gas  is  found  in  sufficient  quantities  to  endanger  the  rig, 

material  or  equipment,  part of  the  first  part  shall  assume  the  risk 

thereof  and  remove  at own  expense  the  fires  and  boilers  to  a 

safe  distance  from  the  well.  All  pipe  and  fittings  made  necessary  by 
such  removal  shall  be  furnished  by  said  part of  the  first  part. 

When  completed,  unless  prevented  by  too  great  a  volume  of  gas  or 
oil,  the  well  shall  be  thoroughly  "bailed"  and  "sand  pumped"  by  said 

part of  the  first  part  until  all  drillings  and  sediment  are  removed 

therefrom  and  the  well  thoroughly  cleaned. 

The  part 6f  the  first  part  shall  carefully  examine  the  rig,  all 

machinery,  casing  and  other  appliances  to  be  furnished  for  said  well 
by  the  party  of  the  second  part,  and  If  any  defect  be  found  therein 
sufficient  to  make  the  use  of  such  rig,  machinery,  casing  or  other  ap- 
pliances unsafe,  shall  Immediately  notify  the  party  of  the  second  part 
in  writing  of  such  defect  or  defects,  and  the  party  of  the  second  part 
shall  at  once  replace  the  article  so  found  defective  with  a  good  and  safe 
one;  but  if  the  part. . .  .of  the  first  part  shall  not  make  such  examlna- 


156  OKLAHOMA  OIL  AND  GAB  LAWS 

tion,  or  shall  not  so  report  any  defects  in  said  rig,  machinery,  casing 

or  other  appliances shall  be  deemed  to  have  assumed  all 

risks  and  all  responsibility  for  any  mishap  which  may  occur  in  the 
drilling  of  said  well,  by  reason  of  a  failure  iu  such  rig  machinery, 
casing  or  other  appliance. 

No  part  of  the  contract  price  above  mentioned  shall  in  any  event  be 
paid  until  said  well  shall  be  completed  to  the  depth  above  required,  and 
delivered  to  the  party  of  the  second  tart,  in  thoroughly  good  order, 
free  and  clear  of  all  obstacles. 

The  part of  the  first  part  agree to  bogin  the  drilling  of  the 

said  well  within days  from 

and  prosecute  the  work  actively  and  continuously  (Sunday  excepted) 
to  completion. 

It  is  fully  understood  and  agreed  that  none  of  the  provisions  or 
requirements  of  this  contract  shall  be  considered  as  waived  by  second 
party,  unless  the  same  is  done  in  writing,  and  then  only  by  the  Gen- 
eral Superintendent,  or  Manager  of  second  party. 

IT  Is  FUETHEB  AGBEED,  That  time  shall  be  the  essence  of  this  con- 
tract, and  in  case  the  part of  the  first  part  shall  neglect  or  discon- 
tinue the  work  of  drilling  said  well  for  the  space  of  five  days,  such 
neglect  or  discontinuance  shall  of  itself  be  a  forfeiture  of  all  rights 
and  claims  of  the  part of  the  first  part  under  this  agreement  with- 
out any  notice  or  demand  by  the  party  of  the  second  part.  The  party 
of  the  second  part  shall  have  the  right  at  any  time  after  such  for- 
feiture to  take  possession  of  said  well,  discontinue  the  drilling  thereof 
and  at  its  pleasure,  dismantle  or  abandon  the  same  without  liability 

to  the  part of  the  first  part  for  any  portion  of  the  contract  price 

above  mentioned.  The  party  of  the  second  part  shall  also  have  the 
right  at  any  time  after  such  forfeiture  as  apove  mentioned,  if  it  so 
elects,  to  take  possession  of  said  well  and  all  ropes,  tools  and  appliances 
thereat  of  the  part.... of  the  first  part,  and  drill  said  well  to  comple- 
tion. In  case  it  shall  succeed  in  completing  said  well,  the  cost  of  such 
completion  without  any  allowance  to  said  part. . .  .of  the  first  part  for 
the  use  of  said  ropes,  tools  and  appliances,  shall  be  deducted  from  the 
contract  price  above  mentioned,  and  the  balance,  if  any,  paid  to  the 

part of  the  first  part;  but  if  said  party  of  the  second  part  should  not 

succeed  in  completing  said  well,  it  shall  not  be  liable  to  the  part 

of  the  first  part  in  any  sum  whatever  and  shall  return  said  tools,  ropes 

and  appliances  to  the  part of  the  first  part  in  as   good   order   as 

when  received,  natural  wear  and  tear  and  accidental  loss  or  breakage 
excepted 


FORMS.  157 

After  the  drilling  of  the  well,  should  the  party  of  the  second  part 
desire  to  torpedo  and  dean  out  After  the  torpedo,  the  first  part.. . 
afreet  to  work  at dollars  per  day  of hours 

All  risk  and  damage  to  tools,  derrick  or  equipment  shall  be  assumed 

by  the  part of  the  first  part  at  all  times  until  all  work  to  be  done 

under  this  contract  is  fully  and  finally   completed    and    the   well    is 
accepted  as  completed  by  the  party  of  the  second  part. 

IN  WITNESS  WHEKEOF,  The  part of  the  first  part  ha. . .  .hereunto 

set hand  and  seal  and  the  party  of  the  second  part  has 

caused  these  presents  to  be  signed  by  its  General  Superintendent  or 

Manager  the  date  first  above  written. 

Witnesses: 


(Seal) 

(Seal) 

(Seal) 

(Seal) 

(For  acknowledgment  see  Form  11.) 

NO.  9.     STIPULATION. 
CHANGE  OF  DEPOSITORY. 

KNOW    ALL    MEN    BY    THESE    PRESENTS:     WHEREAS,   on   the 

day  of ,  19 ,  an  Oil  and  Gas  Lease 

was  entered  into  by  and  between 

as  Lessor  and as  Lessee  covering  the 

following  described  property  in County, 

Oklahoma,  to-wit:     (Here  describe.) 

Which  lease  was  filed  for  record  in  the  office  of  the  County  Clerk  of 

County,  Oklahoma,  in  Book page 

which  said  lease  provided  in  case  a  well  was  not 

on  said  land  on  or  before  a  date  therein  specified,  that  certain  rentals 

should  be  deposited  in  the Bank  of 

Oklahoma  as  delay  rentals  to  credit  of  Lessor  above  referred  to  or  his 
assigns. 

AND  WHEBEAS,  under  and  by  virtue  of  a  conveyance  of  oil  and  gas 

royalty  dated  the day  of 192 

said  Lessor  above  referred  to  sold  and  conveyed 

interest  in  and  to  their  right,  title  and  interest  to  the  oil  and  gas  roy- 
alty, including  rentals  and  bonus  to 

of.. 


158  OKLAHOMA  OIL  AND  GAS  LAWS 

Now,  THEBEFORE,  for  and  In  consideration  of  $1  in  hand  paid  to 

receipt  of  which  is  hereby  acknowledged, 

said does  hereby  stipulate  and  agree  with 

and  to  said  Lessee  that  the  depository  for  the. 

interest  purchased  by  said in  said  delay 

rentals  shall  be  changed  from Bank 

as  stipulated  in  said  lease  to  the Bank, 

which  shall  be  and  remain  the 

depository  for  all  rentals  and  royalties  due  and  to  become  due  said 

provided  for  in  said  lease  and  during 

the  remainder  of  its  term. 

And as  Lessee  in  the  original  lease  or 

the  assignee  thereof  does  hereby  stipulate  and  agree  with  and  to  the 

said that  this  change  of  depository 

shall  supplement  and  become  a  part  of  the  lease  first  above  referred 
to  and  that  said  rentals  will  be  deposited  as  herein  provided  for  and 

failure  to  deposit  such  rentals  in  the Bank 

shall  constitute  a  violation  of  one  of  the  principal  terms  of  the  lease 
and  thereupon  become  inoperative  as  to  both  parties  herein. 

Dated  this..  day  of 19 


(For  acknowledgment  see  Form  11.) 

NO.  10.     STATEMENT  OF  LIEN  ON  OIL  OR  GAS  WELL. 

(To  be  filed  with  Court  Clerk.) 
State  of  Oklahoma, 
County — SS. 

KNOW  ALL  MEN  BY  THESE  PRESENTS:  That  I,  A.  B.,  under  a 
contract  with  C.  D.,  as  owner  of  the  leasehold  estate  hereinafter  de- 
scribed, performed  labor  and  furnished  material  for  (here  state  nature 
of  labor  performed  or  material  furnished),  and  that  there  is  now  due 
to  said  contractor  from  said  owner  for  such  labor  performed  and  mate- 
rial furnished  the  sum  of  $ ,  with  interest  thereon  at 

the  rate  of  six  per  cent  per  annum  from and 

that  said  contractor  claims  a  lien  on  said  leasehold  estate,  and  on  the 
oil  and  gas  wells  located  on  said  leasehold  estate,  for  the  payment  of 
said  debt. 

And  said  contractor  further  states  that  he  commenced  to  perform 

such  labor  and  furnish  such  materials  on  or  about  the 

day  of ,  1922,  and  thereafter  continued 

to  perform  such  labor  and  furnish  materials  until  the 


FORMS.  159 

day  of ,  1922,  when  the  last  labor  was 

performed  and  materials  furnished  on  said  contract. 

That  said  contractor  for  the  purpose  of  protecting  and  enforcing 
said  lien  on  said  real  estate  makes  and  files  this  statement.  The 

amount  claimed  is  $ with  interest  thereon  at  the  rate  of 

six  per  cent  per  annum  from  the day  of , 

1922;  that  the  name  of  the  owner  of  said  leasehold  estate  is  C.  D.;  the 
name  of  the  contractor  is  A.  B.,  and  the  name  of  the  claimant  herein 
is  A.  B.;  that  the  description  of  the  property  on  which  the  labor  was 
performed  and  material  furnished  is  as  follows:  (describe  property) 
in  said  County  and  State. 

That  the  amount  claimed  and  the  items  are  set  forth  as  nearly  as 
practicable  in  the  itemized  statement  hereto  attached,  marked  "Ex- 
hibit A,"  and  is  made  a  part  hereof. 

That  said  sum  is  just,  due  and  unpaid,  and  that  the  said  A.  B.  hereby 
claims  a  lien  upon  said  leasehold  estate,  and  upon  said  materials  fur- 
nished, and  upon  all  oil  and  gas  wells  and  appurtenances  thereon,  in 

the  sum  of  $ with  interest  thereon  at  the  rate  of  six  per 

cent  per  annum  from  the day  of , 

1922,  until  paid. 

Dated  this day  of ,  1922. 

(Signature.) 
State  of  Oklahoma, 
County— SS. 

A.  B.,  of  lawful  age,  being  first  duly  sworn,  upon  oath  deposes  and 
says:  That  he  has  read  the  above  and  foregoing  statement  of  mechan- 
ic's lien  and  knows  the  contents  thereof,  and  that  the  name  of  the 
owner,  the  name  of  the  contractor,  the  name  of  the  claimant,  the  de- 
scription of  the  property  upon  which  the  lien  is  claimed,  and  the 
items  of  the  account  as  herein  set  forth  are  just,  true  and  correct. 

(Signature.) 

Subscribed  and  sworn  to  before  me  this day  of 

1922. 

(Signature  and  title  of  officer.) 

Approved  form,  see  Cline  v.  Pattin  Bros.  Co.  (Ok la.),  156  Pac.  167. 
(See  Section  124  herein.) 

NO.  11.     ACKNOWLEDGMENTS. 

(a)    INDIVIDUAL  FORM. 
State  of  Oklahoma, 

County — SS. 

Before  me (title  of  officer) ,  in  and  for 

said  County  and  State,  on  this day  of 


160  OKLAHOMA  OIL  AND  GAS  LAWS 

personally  appeared and 

to  me  known  to  be  the  identical  persons  who  executed  the  within  and 

foregoing  Instrument  and  acknowledged  to  me  that.... executed 

the  same  as free  and  voluntary  act  and  deed  for  the  uses 

and  purposes  therein  set  forth. 

(Seal)  (Signature  and  official  title.) 

(Sec.  1179,  Rev.  Laws  1910.) 

(b)  BY  OFFICER  OF  CORPORATION. 

State  of  Oklahoma, 
County — SS. 

Before  me,  (title  of  officer  taking 

acknowledgment),  In  and  for  said  County  and  State,  on  this 

day  of personally  appeared 

to  me  known  to  be  the  identical  person  who  subscribed  the  name  of  the 
maker  thereof  to  the  foregoing  instrument  as  its  (attorney  in  fact, 
president,  vice-president,  or  mayor,  as  the  case  may  be)  and  acknowl- 
edged to  me  that  he  executed  the  same  as  his  free  and  voluntary  act 
and  deed,  and  as  the  free  and  voluntary  act  and  deed  of  such  corpora- 
tion, for  the  uses  and  purposes  therein  set  forth. 

(Seal)  (Signature  and  official  title.) 

(See.  1188,  Rev.  Laws  1910.) 

(c)  WHERE  EXECUTED  BY  MARK. 
State  of  Oklahoma, 

County — SS. 

Before  me,  (title  of  officer) ,  in  and 

for  said  County  and  State,  on  this day  of 

personally  appeared and 

to  me  known  to  be  the  identical  person  who  executed  the  within  and 

foregoing  instrument  by mark,  in  my  presence  and  in  the 

presence   of and as 

witnesses,  and  acknowledged  to  me  that executed  the  same  as 

free  and  voluntary  act  and  deed  for   the   uses   and    purposes 

therein  set  forth. 

(Seal)  (Signature  and  official  title.) 

(Sec.    1180,    Rev.    Laws   1910.) 

Note:  Every  acknowledgment  must  be  under  the  neal  of  the  officer  tak- 
ing the  same;  and  when  taken  in  this  State,  it  may  be  taken  before  any 
notary  public,  county  clerk,  clerk  of  the  district  court,  clerk  of  the  county 
court,  or  county  judge.  (S.  L.  1913,  p.  604.  Sec.  1;  amending  Sec.  1181, 
Rev.  Laws  1010.) 


Digest 


A  DIGEST  OF  OIL  AND  GAS  CASES  DECIDED  BY  THE  OKLAHOMA 

SUPREME  COURT,  AND  OKLAHOMA  CASES  DECIDED  BY 

THE  FEDERAL  COURTS,  INCLUDING  VOLUME  82, 

OKLA.  REPORTS,   205  PAC.   REPORTER,  276 

FEDERAL  REPORTER,  AND  252  U.  S.  SUPREME. 


1.  MINERAL  LANDS. 

1.  Oil  and  gas  as  minerals. 

2.  Public  mineral  lands. 

II.  TITLES,  CONVEYANCES  AND  CONTRACTS. 

3.  Nature  of  property  in  minerals. 

4.  Injunction  against  waste. 

5.  Sales  of  land  with  minerals. 

6.  Grants  and  reservations  of  minerals  and  mining  rights. 

7.  Nature  of  mining  leases  and  contracts. 

8.  Agreements  for  leases. 

9.  Requisites  and  validity. 

10.  Modification  or  recission. 

11.  Assignment  or  sale  of  lease  or  reversion. 

(1)  In  general. 

(2)  Measure  of  damages. 

(3)  Estoppel. 

(4)  Statute  of  frauds. 

(5)  Notice. 

12.  Construction  and  operation  of  oil  and  gas  leases. 

(1)  In  general. 

(2)  Extension  or  renewal. 

(3)  Surrender,  abandonment  or  forfeiture. 

(4)  Testing  or  working. 

(5)  Rent  or  royalties. 

III.  OPERATION  OF  LEASES  AND  WELLS. 

13.  Mode  of  working  in  general. 

14.  Contracts  for  testing  or  working. 

15.  Rights  and  liabilities  incident  to  working. 

IV.  INDIAN  LANDS. 

16.  Power  to  lease  Indian  lands. 

17.  Statutory  provisions. 

161 


162 

18.  Supervision  by  Federal  Government. 

19.  Construction  and  operation  of  oil  and  gas  leases. 

20.  Rent  or  royalties. 

1.  MINERAL  LANDS. 

1.  Oil  and  Gas  as  Minerals. 

Oil  and  gas  are  minerals,  within  the  meaning  of  a  reservation 
by  deed  of  "all  mineral  rights"  upon  the  land  described  in  the 
deed.  Barker  v.  Campbell-Ratcliff  Land  Co.,  64  Okla.  249,  167 
Pac.  468,  L.  R.  A.  1918A,  487.  Note:  17  A.  L.  R.  162. 

In  the  various  acts  of  Congress  dealing  with  the  sale  and 
leasing  of  land  of  Indians  in  Oklahoma,  oil  and  gas  are  treated 
as  minerals.  Leahy  v.  Indian  Territory  Illuminating  Oil  Co., 
39  Okla.  312,  135  Pac.  416 ;  Superior  0.  &  G.  Co.  v.  Mehlin,  25 
Okla.  809,  108  Pac.  545,  138  Am.  St.  Rep.  942. 

Where  the  granting  clause  of  the  lease  uses  the  language  ' '  all 
the  oil,  gas,  and  other  minerals,"  it  must  be  construed  to  be 
minerals  of  like  character.  By  the  rule  of  ejusdem  generis 
where  general  words  follow  the  enumeration  of  particular 
classes  of  minerals,  the  general  words  will  be  construed  as  ap- 
plicable only  to  minerals  of  the  same  general  character  or  class 
as  those  enumerated.  Wolf  v.  Blackwell  0.  &  G.  Co.,  77  Okla. 
81,  186  Pac.  484. 

2.  Public  Mineral  Lands. 

Public  lands  of  the  United  States  subject  to  settlement  and 
occupancy,  containing  petroleum  or  other  mineral  oils,  chiefly 
valuable  therefor,  may  be  entered  and  patent  obtained  thereto 
under  the  laws  of  the  United  States  relating  to  placer  mining 
claims.  Bay  v.  Oklahoma  Southern  Gas,  Oil  and  Mining  Co., 
13  Okla.  425,  73  Pac.  936.  Note:  7  L.  R.  A.  (N.  S.)  763. 

3.  Nature  of  Property  in  Minerals. 

"The  lease  relied  upon  by  the  plaintiff  does  not  vest  in  him 
the  title  to  the  oil  and  gas  in  said  land,  and  is  not  a  grant  of 


DIGEST  OF  CASES  168 

any  estate  therein,  but  is  simply  a  grant  of  a  right  to  prospect 
for  oil  and  gas,  no  title  vesting  until  such  substances  are  re- 
duced to  possession  by  extracting  same  from  the  earth — an 
incorporated  hereditament."  Kolachny  v.  Galbreath,  26  Okla. 
772,  110  Pac.  902,  38  L.  R.  A.  (N.  S.)  451. 

The  above  case  has  been  cited  with  approval  in  Frank  Oil  Co. 
v.  Belleview  Gas  &  Oil  Co.,  29  Okla.  719,  119  Pac.  260,  43 
L.  R.  A.  (N.  S.)  487;  Duff  v.  Keaton,  33  Okla.  92,  124  Pac.  291, 

42  L.  R.  A.  (N.  S.)  472;  In  re  Indian  Ty.  Illuminating  Oil  Co., 

43  Okla.  307,  142  Pac.  997;  Hill  Oil  &  Gas  Co.  v.  White,  53 
Okla.  748,  157  Pac.  710;  Warner  v.  Page,  59  Okla.  259,  159 
Pac.  264 ;  Kelly  v.  Harris,  62  Okla.  236,  162  Pac.  219 ;  Barker  v. 
Campbell-Ratcliff  Land  Co.,  64  Okla.  249,  167  Pac.  468,  L.  R.  A. 
1918A,  487;  Rich  v.  Doneghey,  —  Okla.  — ,  177  Pac.  86,  3 
A.  L.  R.  352;  Garfield  Oil  Co.  v.  Champlin,  78  Okla.  91,  189 
Pac.  514;  Woodworth  v.  Franklin,  204  Pac.  452. 

An  oil  and  gas  mining  lease,  under  the  laws  of  Oklahoma, 
whether  a  chattel  real,  an  incorporated  hereditament,  or  what- 
ever termed,  is  nevertheless  a  right  or  interest  relating  to  real 
estate,  and,  although  not  arising  to  the  dignity  of  an  estate 
prior  to  entry  by  a  lessee,  is  "property,"  and  as  such  the  sub- 
ject of  transfer  and  sale.  Shaffer  v.  Marks,  241  Fed.  139. 

Oil  and  gas  in  the  earth  are,  unlike  ore  and  coal,  fugacious 
and  incapable  of  ownership  distinct  from  the  land,  and  a  grant 
of  the  oil  and  gas  in  a  tract  of  land  is  a  grant  of  that  part  of 
the  oil  and  gas  therein  which  the  grantee  may  find  and  capture, 
no  title  vests  until  the  oil  or  gas  is  reduced  to  posseession  by 
extracting  the  same  from  the  earth,  and  hence  the  lease  is  a 
grant  of  an  incorporeal  hereditament.  Priddy  v.  Thompson, 
204  Fed.  955. 

Natural  gas  found  within  the  territorial  limits  of  a  State  is 
not  a  product  which  the  State  may  conserve  as  a  thing  in  which 
the  people  of  the  State  have  a  common  interest;  but  one  who 
by  lawful  right  reduces  it  to  possession  has  the  absolute  right 
therein,  with  the  right  to  transfer  and  sell  and  deliver  the  same 


164 

as  other  personal  property,  of  which  he  could  not  be  deprived 
without  just  compensation,  without  violating  amendment  four- 
teen of  the  Federal  Constitution  and  Art.  12,  Sec.  24,  6f  the 
State  Constitution.  Kansas  Natural  Gas  Co.  v.  Haskell,  172 
Fed.  545. 

The  owner  of  land  has  a  qualified  ownership  in  the  oil  and 
gas  beneath  it,  which  may  be  termed  an  exclusive  right,  subject 
to  legislative  control  against  waste,  etc.,  to  explore  therefor 
by  drilling  wells,  and  to  reduce  to  possession  and  to  acquire 
absolute  title  thereto  as  personal  property.  Rich  v.  Doneghey, 
177  Pac.  86,  3  A.  L.  E.  352. 

4.  Injunction  Ag-ainst  Waste. 

While  courts  of  equity  will  generally  refuse  to  interfere  with 
possession  of  land  before  the  right  is  determined  at  law,  yet,  if 
defendant's  possession  is  not  exclusive,  and  is  but  an  interrup- 
tion of  the  prior,  open,  notorious,  and  peaceable  possession  of 
complainant,  an  injunction  may  be  allowed,  especially  in  cases 
where  the  entry  by  the  defendant  was  for  the  purpose  of  com- 
mitting waste  such  as  the  taking  out  of  minerals.  Collier  v. 
Bartlett  (Okla.),  175  Pac.  247. 

5.  Sales  of  Land  with  Minerals. 

A  conveyance  of  land  by  warranty  deed,  without  reserva- 
tion therein,  passes  to  the  grantee,  his  heirs  or  assigns,  "the 
whole  interest  of  the  grantor  in  the  premises  described,"  in- 
cluding the  right  to  the  oil  and  natural  gas  that  may  be  found 
underneath  the  premises  granted,  or  by  drilling  thereon.  Kimb- 
ley  v.  Lucky,  —  Okla.  — ,  179  Pac.  928. 

6.  Grants  and  Reservations  of  Minerals  and  Mining1  Rights. 

The  right  of  an  owner  of  land  as  to  the  oil  and  gas  beneath 
it  is  the  proper  subject  of  sale,  and  may  be  granted  or  reserved. 
Rich  v.  Doneghey,  177  Pac.  86,  3  A.  L.  R.  352^  Ramey  v.  Steph- 
ney,  173  Pac.  72. 


DIGEST  OP  CASES  165 

The  defendant  land  company  conveyed  the  land  in  question 
to  one  through  whom  plaintiff  claims,  reserving  in  the  grant 
ing  clause  all  mineral  rights  upon  the  above-described  lands, 
and  the  right  to  enter  thereon  and  to  use  so  much  of  the  sur- 
face as  may  be  reasonable  for  the  purpose  of  extracting  the 
mineral  thereon.  Held,  this  reservation  is  not  repugnant  to  the 
covenants  of  title.  Held,  further,  this  reservation  excepted 
from  the  conveyance  the  right  of  defendant  land  company  to 
enter  upon  the  land  for  the  purposes  of  exploring  and  extract- 
ing the  oil  and  gas.  Plaintiff  took  the  title  with  this  exception 
and  burdened  with  this  right.  Barker  v.  Campbell-Ratcliff 
Land  Co.,  64  Okla.  249,  167  Pac.  468,  L.  R.  A.  1918A,  487. 

An  instrument  in  terms  granting  all  the  oil,  gas,  coal  and 
asphaltum  under  certain  described  lands,  but  which  was  de- 
nominated a  lease,  had  a  definite  term  of  15  years,  and  pro- 
vided, in  addition  to  a  cash  payment  of  $50,  for  the  payment  of 
a  royalty  on  all  oil  produced,  was  construed  to  be  a  lease,  and 
not  a  conveyance  in  fee  of  the  minerals  in  place.  Moore  v. 
Sawyer,  167  Fed.  826. 

A  reservation  as  to  an  oil  and  gas  lease  in  a  conveyance  of 
seventy  acres  of  land  where  there  was  an  existing  oil  and  gas 
lease  on  but  fifty  acres  of  such  land,  did  not  apply  to  an  oil 
and  gas  lease  subsequently  placed  upon  the  remaining  twenty 
acres.  Tilloston  v.  Martin,  80  Okla.  156,  193  Pac.  975. 

A  land  company  conveyed  land  reserving  to  it,  its  successors 
and  assigns,  nine-tenths  of  all  oil,  gas,  and  mineral  in  and 
under  the  surface  of  said  land  for  21  years,  together  with  a 
full  and  free  right  to  enter  upon  said  premises  and  use  so 
much  of  the  surface  thereof  as  might  be  reasonably  necessary 
for  operating  and  drilling  and  marketing  the  production  there- 
of. It  thereafter  by  quit-claim  deed  conveyed  to  D.  all  its 
right,  title,  and  interest  in  the  oil  and  gas  in  and  under  said 
land  for  21  years.  Said  quit-claim  deed  further  recited :  ' '  This 
is  intended  to  convey  only  nine-tenths  of  the  oil  and  gas  for 
21  years,  from  March  29,  1912,  which  nine-tenths  was  reserved 
by  the  grantor.  Held,  that  said  recital  did  not  limit  the  quit- 


16(5  OKLAHOMA  OIL  AND  GAS  LAWS 

claim  deed  to  a  simple  conveyance  of  nine-tenths  of  the  oil 
and  gas  in  and  under  the  land,  but  that  said  quitclaim  deed 
conveyed  all  of  the  rights  of  the  grantor  reserved  in  its  war- 
ranty deed  to  nine-tenths  of  the  oil  and  gas  in  and  under 
said  land  for  21  years,  including  the  right  to  enter  upon  the 
land,  prospect,  drill,  and  take  therefrom  said  oil  and  gas. 
Ramey  v.  Stephney,  —  Okla.  — ,  173  Pac.  72. 

A  grant  of  oil  and  gas  underlying  the  grantor's  land  to 
one,  and  his  heirs  and  assigns  forever,  carries  an  interest  in 
the  fee.  Rich  v.  Doneghey,  177  Pac.  86,  3  A.  L.  R.  352. 

An  interest  of  less  duration  than  a  fee  may  be  granted  in 
oil  and  gas  underlying  the  grantor's  land,  and  an  interest  for 
a  term  of  years  has  been  termed  a  "chattel  real."  Id. 

C.  purchased  the  interest  of  H.  in  certain  oil  lands  and 
leases,  in  the  possession  and  under  the  management  of  C., 
including  cash  on  hand  and  credit  due  H.  A  check  previously 
issued  and  delivered  to  R.,  a  joint  payee,  in  payment  of  credits 
due  H.  and  R.,  but  not  delivered  to  H.  and  of  which  he  had 
no  actual  notice,  was  recalled  from  R.  and  canceled,  treating 
the  amount  represented  by  the  check  as  cash  on  hand.  Held, 
the  sale  included  cash  on  hand  as  shown  by  the  credits  due 
and  unpaid,  delivery  of  the  check  to  R.  in  the  circumstances 
of  this  case  amounted  to  payment,  and  H.'s  interest  in  the 
check  was  not  included  in  the  sale.  Rogers  v.  Harris,  76  Okla. 
215,  184  Pac.  459. 

Under  the  decisions  in  this  State,  oil  and  gas,  while  in  the 
earth,  unlike  solid  minerals,  are  not  subject  to  ownership 
distinct  from  the  soil,  and  the  grant  of  the  oil,  therefore,  is 
a  grant  not  of  the  oil  that  is  in  the  ground,  but  of  such  a 
part  as  the  grantee  may  find.  An  "unless"  lease  is  subject 
to  termination  at  the  will  of  the  lessee,  which  privilege  may 
be  exercised  by  a  mere  failure  to  pay  the  stipulated  rental 
at  the  time  due,  upon  the  happening  of  which  the  lease  auto- 
matically terminates,  and  the  lessor  cannot  maintain  an  action 
against  the  lessee  for  rentals.  Garfield  Oil  Co.  v.  Champlin, 
78  Okla.  91,  189  Pac.  514. 


DIGEST  OP  CASES  167 

Where  T.  purchased  land  from  U.,  and  his  deed  thereto 
contains  a  recital  excepting  an  oil  lease  to  M.,  he  takes  the 
land  burdened  with  the  lease,  and  a  presumption  of  law  arises, 
in  the  absence  of  proof  to  the  contrary,  that  the  lease  was 
taken  into  consideration  in  determining  the  purchase  price  of 
the  land.  McKee  v.  Thornton,  79  Okla.  138,  192  Pac.  212. 

The  time  when  operations  under  an  oil  and  gas  lease  shall 
commence  is  a  proper  subject  of  agreement  between  the  parties, 
and  in  the  absence  of  circumstances  requiring  equitable  inter- 
vention, one  who  purchases  land  burdened  with  a  valid  lease 
has  no  right  to  expect  or  require  the  lessee  to  begin  opera- 
tion or  development  prior  to  the  time  provided  in  such  lease. 
Id. 

7.  Nature  of  Mining  Leases  and  Contracts. 

An  agreement  in  the  form  of  a  lease  for  a  certain  term  of 
years,  granting  the  right  to  explore  for  oil  and  gas,  is  more 
like  a  license  than  an  estate  in  the  land.  Mitchell  v.  Probst, 
52  Okla.  10,  152  Pac.  597. 

One  who  holds  an  enforceable  contract  for  an  oil  and  gas 
lease  and  for  an  interest  in  land  may  contract  in  respect 
thereto,  and  may,  in  effecting  a  settlement  of  his  rights,  enter 
into  a  contract  with  the  grantees  of  those  with  whom  he 
formerly  contracted,  reserving  to  himself  the  oil  and  gas 
beneath  the  lands  conveyed.  Kroeger  v.  Martin,  —  Okla.  — . 
180  Pac.  955. 

Where  in  such  contract  the  party  to  the  former  contract 
reserves  the  oil  and  gas  for  a  term  of  15  years,  the  time  when 
operations  shall  commence  is  a  proper  subject  of  agreement 
between  the  parties,  and,  in  the  absence  of  imposition,  fraud, 
or  mistake,  the  grantees  will  be  held  to  their  undertaking. 
Kroeger  v.  Martin,  —  Okla.  — ,  180  Pac.  955. 

A  contract  for  the  sale  of  an  oil  and  gas  lease  stipulated 
that  the  mutual  obligations  of  the  parties  should  accrue  only 
in  case  of  approval  of  the  title  of  the  land  by  the  attorney  of 


168  OKLAHOMA  OIL  AND  GAS  LAWS 

the  purchaser.  Held,  that  it  is  immaterial,  in  case  of  dis- 
approval of  the  title  by  such  attorney,  on  what  grounds  he 
objects,  provided  the  disapproval  is  in  good  faith.  First  Nat. 
Bank  of  Waurika  v.  Clay,  —  Okla.  — ,  177  Pac.  115. 

Where  one  who  contracts  to  purchase  an  oil  and  gas  lease, 
subject  to  the  approval  of  the  title  of  the  land  by  his  attorney, 
refuses  afterwards  to  complete  the  purchase  because  the  title 
is  disapproved  by  such  attorney,  and  the  vendor  seeks  to 
enforce  the  sale,  the  burden  is  upon  such  vendor  to  prove 
that  the  vendee  or  his  attorney  acted  in  bad  faith  in  rejecting 
the  title.  First  Nat.  Bank  of  Waurika  v.  Clay,  —  Okla.  — , 
177  Pac.  115. 

Testimony  as  to  the  grounds  upon  which  an  attorney  for  a 
proposed  vendee  of  an  oil  and  gas  lease  bases  his  disapproval 
of  title  of  the  land  submitted  to  him  under  a  written  contract 
between  the  vendor  and  the  vendee,  making  the  opinion  of 
such  attorney  final  as  to  title,  is  not  admissible  to  change  the 
written  contract,  but  is  competent  as  proof  of  a  circumstance 
throwing  light  on  the  action  of  the  attorney;  when,  however, 
there  is  no  evidence  introduced  or  offered  which,  in  connec- 
tion with  the  contract  of  the  attorney,  tends  to  prove  bad 
faith,  the  rejection  of  testimony  showing  the  grounds  of  dis- 
approval does  not  constitute  prejudicial  error.  First  Nat. 
Bank  of  Waurika  v.  Clay,  —  Okla.  — ,  177  Pac.  115. 

8.  Agreements  for  Leases. 

Lease  for  oil  and  gas  properties  considered  and  held  that 
a  provision  therein  constituted  an  option  on  the  property. 
Garfield  Oil  Co.  v.  Champlin,  78  Okla.  91,  189  Pac.  514. 

9.  Requisites  and  Validity. 

In  an  oil  and  gas  mining  lease  granting  to  the  lessee  all 
the  oil,  gas,  and  other  minerals  in  and  under  the  premises 
leased,  but  excepting  a  portion  of  the  lands  from  drilling 
operations,  the  portion  so  excepted  or  reserved  must  be 


DIGEST  OP  CASES  169 

described  with  sufficient  certainty  as  to  be  easy  of  identifica- 
tion. Hennessy  v.  Junction  Oil  &  Gas  Co.,  75  Okla.  220,  182 
Pac.  666. 

Record  examined,  and  held,  that  after  a  careful  examina- 
tion of  the  record  we  are  not  prepared  to  say  that  the  judg- 
ment rendered  by  the  trial  court  is  against  the  clear  weight 
of  the  evidence.  Van  Winkle  v.  Henkle,  77  Okla.  34,  186 
Pac.  942. 

Provision  in  an  oil  and  gas  lease,  allowing  the  lessee  on 
payment  of  $1  to  surrender  the  lease  for  cancellation,  does 
not  render  the  lease  unilateral,  so  as  to  give  the  lessor  a  right 
of  cancellation.  Washburn  v.  Gillespie,  261  Fed.  41. 

An  exploration  oil  lease  for  which  bonus  is  paid  with 
renewal  privilege  is  a  valid  mutual  contract  and  not  subject 
to  forfeiture.  Brunson  v.  Carter  Oil  Co.,  263  Fed.  935. 

The  acknowledgment  of  an  oil  and  gas  lease  was  held  not 
necessary  to  its  validity  between  the  parties.  Roach  v.  Junc- 
tion Oil  &  Gas  Co.  (Okla.),  179  Pac.  934. 

10.  Modification  or  Rescission. 

A  lessor  invoking  the  jurisdiction  of  a  court  of  equity  to 
cancel  and  rescind  a  lease  for  breach  of  an  implied  covenant 
must  come  into  court  with  clean  hands,  and  must  act  with 
reasonable  diligence  after  the  discovery  of  his  right  to  the 
forfeiture  on  account  of  such  breach.  Indiana  Oil,  Gas  & 
Dev.  Co.  v.  McCrory,  42  Okla.  136,  140  Pac.  610;  Wapa  Oil 
&  Dev.  Co.  v.  McBride  (Okla.),  201  Pac.  984. 

Pleading  considered  in  suit  to  cancel  lease  for  failure  to 
dig  well  or  pay  rent,  and  answer  held  to  constitute  a  defense. 
Garfield  Oil  Co.  v.  Champlin,  78  Okla.  91,  189  Pac.  514. 

Petition  to  cancel  lease  held  to  state  a  cause  of  action,  and 
not  subject  to  demurrer  for  misjoinder.  Jackson  v.  Moore. 
79  Okla.  59,  191  Pac.  590. 


170  OKLAHOMA  OIL  AND  GAS  LAWS 

11.  Assignment  or  Sale  of  Lease  or  Reversion. 
(1)  In  General 

An  oil  and  gas  lease  is  a  chattel  real.  But  in  case  of  an 
assignment  by  the  lessee  of  all  his  "right,  title  and  interest" 
therein,  where  the  assignee  has  knowledge  of  a  prior  existing 
lease,  the  general  rule  applicable  to  sales  of  personalty,  that 
the  act  of  selling  is  in  itself  an  affirmation  by  the  vendor  that 
he  is  the  owner,  out  of  which  arises  an  implied  warranty  of 
title,  does  not  obtain.  Tupeker  v.  Deaner,  46  Okla.  328,  148 
Pac.  853;  Moore  v.  White,  75  Okla.  194,  182  Pac.  684. 

An  assignee  of  an  oil  and  gas  mining  lease,  which  contains 
a  stipulation  to  the  effect  that  all  covenants  and  conditions 
therein  made  shall  be  binding  on  the  assignees  of  both  parties, 
is  liable  for  the  rental  payments  prescribed  in  said  lease  so 
long  as  he  retains  the  same.  Ardizzone  v.  Archer,  —  Okla.  — , 
160  Pac.  446. 

Where  a  person  knowing  of  land  upon  which  an  oil  and 
gas  mining  lease  can  be  obtained,  and,  knowing  the  price  at 
which  he  can  obtain  it,  offers  to  sell  it  to  another  at  a  fixed 
sum,  which  offer  is  accepted  by  the  other,  and  he  then  pro- 
cures the  lease,  the  transaction  is  not  one  of  agency,  and  the 
person  offering  the  lease  occupies  the  position  of  an  assignor 
of  the  lease,  though  the  lease  is  made  direct  from  the  land- 
owner to  the  person  to  whom  he  offered  to  sell  it.  King  v. 
Coombs  (Okla.),  122  Pac.  181. 

Where,  on  the  assignment  of  an  oil  an$  gas  lease  covering 
land  subject  to  a  prior  lease  which  provided  that  it  should 
be  void  unless  a  well  was  commenced  within  one  year  or 
unless  $160  a  year  should  be  paid  in  advance  for  delay  in 
commencing  a  well,  the  assignor  did  not  represent  as  a  fact 
that  no  well  had  been  commenced  or  that  the  payment  had 
not  been  made,  but  merely  stated  that  they  were  so  informed 
by  the  lessors,  and  the  bank  in  which  the  payment  was  to  be 
deposited  and  the  agent  of  the  assignee  had  all  of  the  infor- 
mation that  the  assignors  had,  there  was  no  warranty  by 


DIGEST  or  CASES  171 

the  assignors  with  respect  to  the  prior  lease.     Eastern  Oil  Co. 
r.  Holcomb,  212  Fed.  126. 

Where  an  oil  and  gas  lease  ia  made  to  extend  to  the  heirs, 
administrators,  and  assigns  of  both  lessor  and  lessee,  and  before 
the  discovery  and  production  of  oil  or  gas  thereon  a  third 
party  purchases  a  portion  of  the  leased  premises,  each  owner 
is  ordinarily  entitled  to  the  profits  and  royalties  arising  and 
accruing  from  the  oil  and  gas  produced  on  his  tract,  free  of 
any  claim  or  demand  of  the  other.  Kimbley  v.  Luckey  (Okla.), 
179  Pac.  928. 

Note :  16  A.  L.  E.  588. 

Where  a  tract  of  land  subject  to  an  oil  and  gas  lease  is 
subdivided  by  the  owner  and  lessor  by  selling  a  portion 
thereof,  the  purchaser  of  such  portion  takes  the  same  subject 
to  such  lease;  and,  should  the  lessee  therein  thereafter  dis- 
cover and  produce  oil  or  gas  from  the  residue  of  the  leased 
premises,  such  purchaser  is  not  entitled  to  an  apportionment 
or  share  of  the  royalties  accruing  from  the  oil  and  gas  pro- 
duced thereon.  Id. 

The  words  "after  the  completion  of  a  well,"  as  used  in 
the  option  contract  involved  herein,  are  words  of  plain  mean- 
ing and  significance.  Uncle  Sam  Oil  Co.  v.  Richards,  76  Okla. 
277,  184  Pac.  575. 

Record  examined,  and  held  that,  giving  these  words  their 
ordinary  meaning,  the  uncontradicted  evidence  shows  that  the 
well  involved  in  this  action  was  completed  on  the  28th  day 
of  November,  1912,  after  it  had  been  successfully  shot,  and 
commenced  flowing  oil  in  large  quantities.  Id. 

From  the  fact  that  a  trust  relation  existed  between  the 
lessee  in  an  oil  and  gas  mining  leaae  and  a  third  person, 
as  to  one  of  the  two  tracts  of  land  covered  by  the  lease,  at 
the  time  the  lease  was  executed  by  the  lessors,  and  some 
time  thereafter  the  lessee,  upon  the  payment  to  it,  by  the 
person  for  whose  benefit  the  trust  existed,  of  the  bonus  agreed 


172  OKLAHOMA  OIL  AND  GAS  LAWS 

upon,  and  at  his  request  the  lessor  assigned  the  lease  to 
such  other,  covering  said  tract,  which  assignment  had  been 
treated  as  valid  by  the  lessee,  and  the  purchasers  of  the  fee 
in  the  land  covered  by  the  lease,  held,  that  such  trust  relation 
is  not  available  to  the  purchasers  of  the  fee  as  a  ground  for 
a  suit  for  the  cancellation  of  the  lease  covering  the  other  tract. 
Gypsy  Oil  Co.  v.  Cover,  78  Okla.  158,  189  Pac.  540. 

A  parol  agreement  for  the  sale  of  lands,  or  of  an  oil  and 
gas  lease  thereon,  will  be  enforced  by  the  courts  where  the 
vendee  has  paid  the  purchase  price,  and  taken  possession,  in 
good  faith,  of  the  premises  with  the  knowledge  and  consent 
of  the  owner,  and  made  permanent  improvements,  or  develop- 
ment thereon.  Woodworth  v.  Franklin,  204  Pac.  452. 

An  oil  and  gas  lease  containing  the  usual  provisions  of  such 
lease,  covering  a  homestead,  is  such  a  grant  of  the  use  and 
occupancy  of  the  homestead  as  requires  the  joint  consent  of 
both  the  husband  and  wife.  Carter  Oil  Co.  v.  Popp,  —  Okla. 
— ,  174  Pac.  747 ;  Francen  v.  Oklahoma  Star  Oil  Co.,  80  Okla. 
103,  194  Pac.  193;  Treese  v.  Shoemaker,  80  Okla.  235,  195 
Pac.  766;  Chisholm  v.  Creek  &c  Dec.  Co.,  272  Fed.  589. 

(2)  Measure  of  Damages. 

In  a  suit  to  cancel  an  oil  and  gas  lease,  the  court  should 
not  decree  damages  where  the  measure  thereof  is  uncertain, 
vague,  and  indefinite.  Indiana  Oil,  Gas  &  Dev.  Co.  v.  McCrory, 
42  Okla.  136,  140  Pac.  610. 

A  person  who  in  good  faith  enters  into  peaceable  possession 
of  land  upon  which  he  owns  an  oil  and  gas  lease  and  produces 
oil  and  gas  therefrom,  and  thereafter  said  lease  is  declared 
void  or  invalid,  the  measure  of  damages  of  the  landlord  in 
an  action  for  an  accounting  for  the  oil  and  gas  produced 
from  said  premises  by  the  lessee  is  the  value  of  the  oil  at 
the  surface  or  in  pipe  line  or  tanks,  wherever  the  same  may 
be,  less  the  reasonable  cost  of  producing  the  same.  Barnes  v. 
Winona  Oil  Co.  (Okla.),  200  Pac.  985. 


DIGEST  OF  CASES  173 

Where  a  corporation  in  good  faith  enters  into  peaceable 
possession  of  land  under  a  valid  oil  and  gas  lease,  which  has 
been  assigned  to  it,  and  under  a  claim  of  right  produces  oil 
and  gas  therefrom,  and  thereafter  such  assignment  is  declared 
invalid  and  canceled  by  decree  of  the  court,  the  measure  of 
damages  to  the  original  lessee  in  an  action  for  an  accounting 
for  the  oil  and  gas  produced  from  said  premises  by  the  assignee 
of  said  lease  is  the  value  of  the  lessee's  share  of  such  oil 
and  gas  at  the  surface  or  in  tanks  or  pipe  line,  wherever  the 
same  may  be,  less  the  reasonable  cost  of  producing  the  same. 
Zelina  Oil  Co.  v.  Nemo  Oil  Co.  (Okla.),  203  Pac.  203. 

Where  a  lessee  in  good  faith  takes  peaceful  possession  of 
the  leased  premises,  believing  that  the  lessor  owned  the  entire 
title  in  the  premises,  and  an  action  is  brought  by  another 
person,  who  establishes  an  interest  in  the  premises,  the  measure 
of  damages  arising  in  favor  of  the  party  establishing  a  partial 
interest  in  the  premises  is  the  value  of  his  share  of  the  oil 
at  the  surface  less  the  reasonable  cost  of  production.  Minshall 
v.  Berryhill  (Okla.),  205  Pac.  932. 

(3)  Estoppel. 

The  contract  providing  for  the  payment  of  the  sum  of  $20 
quarterly  in  advance,  the  check  for  the  first  payment  was 
mailed  by  the  lessee  to  the  lessor  on  the  date  the  payment 
was  to  be  made,  and,  being  received  by  the  lessor  on  the 
next  day,  it  was  accepted  by  him.  The  check  for  the  second 
payment  was  mailed  by  the  lessee  to  the  lessor  four  days 
before  the  date  of  payment,  and,  being  received  by  him  prior 
to  said  date  was  accepted.  The  third  quarterly  payment  was 
not  mailed  to  the  lessor  by  the  lessee  until  five  days  after 
the  date  provided  for  payment;  the  lessor  having  three  days 
after  the  date  of  payment  declared  the  lease  forfeited  on  the 
ground  of  non-payment.  The  check  was  received  by  the  lessor 
six  days  after  the  date  of  payment  and  returned  by  him. 
Held,  that  the  accepting  of  the  first  payment  one  day  after 
the  date  of  payment  did  not  estop  the  lessor  from  declaring 


174  OKI^AHOMA  OIL  AND  GAS  LAWS 

a  forfeiture  for  non-payment,  or  operate  as  a  waiver  to  insist 
on  the  conditions  of  the  contract;  the  lessee  obviously  not  so 
construing  it  as  an  estoppel  or  waiver,  as  he  sent  the  second 
payment  four  days  before  the  date  required,  thereby  indicat- 
ing a  recognition  of  the  binding  force  of  all  the  terms  of 
the  contract.  Frank  Oil  Co.  v.  Belleview  Gas  &  Oil  Co.,  29 
Okla.  719,  119  Pac.  260,  43  L.  R.  A.  (N.  S.)  487. 

Where  a  party  entered  into  possession  of  a  tract  of  land 
as  lessee  under  an  oil  and  gas  lease,  and  during  the  tenancy 
the  title  of  his  lessor  is  extinguished  by  a  valid  judgment 
the  lessee  is  not  estopped  from  asserting  such  extinguishment 
in  an  action  thereafter  commenced  by  his  lessor  for  the 
royalties  agreed  to  be  paid  under  the  terms  of  the  lease. 
Stem  v.  Kemp,  77  Okla.  101,  186  Pac.  946. 

A  person  may  waive  a  right  by  conduct  or  acts  which  indi- 
cate an  intention  to  relinquish  it,  or  by  such  failure  to  insist 
upon  it  that  the  party  is  estopped  to  afterwards  set  it  up 
against  his  adversary.  Scott  v.  Signal  Oil  Co.,  35  Okla.  172, 
128  Pac.  694. 

(4)  Statute  of  Frauds. 

An  oil  and  gas  mining  lease,  commonly  known  as  an  "  unless 
lease,"  which  provides  that  it  shall  remain  in  force  for  a 
term  of  five  years  from  its  date,  and  as  long  thereafter  as 
oil  or  gas,  or  either  of  them,  is  produced  from  the  land  by 
the  lessee,  and  which  contains  the  clause  that  if  no  well  be 
commenced  on  said  land  on  or  before  the  expiration  of  one 
year  from  the  date  of  said  lease,  the  same  shall  terminate  as 
to  both  parties,  unless  the  lessee,  on  or  before  that  date  shall 
pay,  or  tender  to  the  lessor,  a  specified  sum  of  money  which 
shall  operate  as  a  rental  and  cover  the  privilege  of  deferring 
the  commencement  of  a  well  for  12  months  from  said  date, 
is  a  lease  of  land  for  a  period  of  five  years,  and  under  the 
provisions  of  the  fifth  subdivision  of  Section  941,  Rev.  Laws 
1910,  is  invalid  unless  in  writing.  Woodworth  v.  Franklin 
(Okla.),  204  Pac.  452. 


DIGEST  OP  CASES  176 

An  assignment  of  such  a  lease,  to  be  valid,  must  also  be 
in  writing.  Id. 

An  executory  contract  for  the  sale  of  auch  a  lease  is  also 
invalid  unless  the  contract,  or  some  note  or  memorandum 
thereof,  be  in  writing  and  subscribed  by  the  party  to  be 
charged,  or  by  his  agent.  Id. 

Where  a  parol  contract  for  the  sale  of  certain  oil  leases,  un- 
enforceable because  within  the  statute  of  frauds,  is  executed, 
and  the  contract  of  sale  fully  performed  by  proper  transfer  of 
said  leases,  and  nothing  remains  to  be  done  except  pay  over 
the  purchase  price,  the  statute  may  not  be  invoked  as  a  means 
of  defeating  a  recovery.  In  such  cases  the  rights  of  the  parties 
are  no  longer  affected  by  the  statute.  Love  v.  Kirkbride  Drill- 
ing &  Oil  Co.,  37  Okla.  804,  129  Pac.  858. 

The  conveyance  of  an  interest  in  an  oil  and  gas  lease  on  land 
is  a  conveyance  affecting  real  estate  within  the  provisions  of 
our  statute.  Bentley  v.  Zelma  Oil  Co.,  76  Okla.  116,  184  Pac. 
131. 

(5)  Notice. 

The  assignment  of  an  oil  and  gas  lease  executed  by  a  citi- 
zen of  the  Cherokee  Nation  prior  to  statehood,  was  not  re- 
quired to  be  recorded  in  order  to  constitute  notice.  Scott  v. 
Signal  Oil  Co.,  35  Okla.  172,  128  Pac.  694. 

An  assignee  of  a  second  oil  lease  on  Indian  land,  who  took 
the  assignment  of  the  lease  with  knowledge  that  a  prior  lease 
was  outstanding,  in  reliance  on  the  records  of  the  office  of  the 
Indian  agent,  which  showed  that  the  prior  lease  had  been  for- 
warded to  the  Land  Department  for  cancellation  at  the  request 
of  the  parties,  held  not  a  bona  fide  purchaser  entitled  to  prefer- 
ence over  the  prior  lease,  where  such  prior  lease  was  not  in 
fact  cancelled,  but  was  approved  by  the  Secretary  of  the  In- 
terior, the  request  for  cancellation  having  been  made  through 
mistake,  which  fact  would  have  been  disclosed  to  the  assignee 


176 

of  the  second  lease  if  he  had  made  inquiry  of  the  parties. 
Moore  v.  Sawyer,  167  Fed.  826. 

Any  equities  in  favor  of  a  lessor  in  an  oil  lease  arising  out 
of  suppression  of  facts  when  the  lease  was  made  or  failure  to 
pay  a  bonus  provided  for  therein,  and  the  receipt  of  which  was 
acknowledged,  does  not  affect  the  validity  of  the  lease  in  the 
hands  of  assigns  who  took  it  for  value  in  good  faith  and  with- 
out any  knowledge  of  such  facts.  Id. 

Section  2,  Article  25,  Williams'  Ann.  Const.,  which  extended 
all  laws  in  force  in  Oklahoma  Territory  to  the  State  of  Okla- 
homa, including  the  laws  regulating  the  recordation  of  instru- 
ments affecting  the  title  to  real  estate,  did  not  repeal  Act  Cong. 
March  1,  1907,  c.  2285,  34  Stat.  1015,  which  provided  that  the 
filing  of  any  lease  in  the  office  of  the  United  States  Indian 
agent,  Union  Agency,  Muskogee,  Ind.  T.,  shall  be  deemed  con- 
structive notice,  but  said  Act  of  March  1,  1907,  survived,  and 
an  oil  and  gas  lease  filed  in  accordance  therewith  is  effectual 
to  impart  notice  to  all  persons  subsequently  dealing  with  the 
lands  therein  described.  Scioto  Oil  Co.  v.  O'Hern  (Okla.),  169 
Pac.  483. 

The  filing  of  a  lease  of  restricted  lands  of  members  of  the 
Five  Civilized  Tribes  for  oil  and  gas  and  other  mining  purposes 
in  the  office  of  the  United  States  Indian  Agent  at  Muskogee, 
for  transmission  to  the  Secretary  of  the  Interior  for  approval, 
constitutes  notice  to  all  parties  subsequently  dealing  with  the 
lands  included  in  said  lease.  Anchor  Oil  Co.  v.  Gray,  41  Sup. 
Ct.  544 ;  same  case  is  also  reported  in  257  Fed.  277, 168  C.  C.  A. 
361. 

Whatever  is  notice  enough  to  excite  attention  and  put  a 
reasonably  prudent  person  on  his  guard  and  calls  for  inquiry, 
is  notice  of  everything  to  which  such  inquiry  might  have  lead, 
and  when  a  person  has  sufficient  information  to  lead  him  to 
a  fact,  he  shall  be  deemed  conversant  with  it.  Wapa  Oil  & 
Dev.  Co.  v.  McBride  (Okla.),  201  Pac.  984;  Swan  v.  O'Bear 
(Okla.),  167  Pac.  470. 


DIGEST  OP  CASES  177 

A  lessee  is  required  as  a  matter  of  law  to  take  notice  of  the 
extent  of  the  claim  of  one  in  possession  Wilkinson  v.  Stone, 
82  Olda.  296 ;  Wapa  Oil  &  Dev.  Co.  v.  McBride,  201  Pac.  984. 

12.  Construction  and  Operation  of  Oil  and  Gas  Leases. 
See  Indian  Lands,  See.  19. 
(1)  In  General. 

A  different  rule  of  construction  obtains  as  to  oil  and  gas 
leases  from  that  applied  to  ordinary  leases  or  to  other  mining 
leases;  and,  owing  to  the  peculiar  nature  of  the  mineral,  and 
the  danger  of  loss  to  the  owner  from  drainage  by  surrounding 
wells,  such  leases  are  construed  most  strongly  against  the  lessee 
and  in  favor  of  the  lessor.  Under  the  rules  of  construction, 
such  leases  are  to  be  construed  so  as  to  promote  development 
and  prevent  delay.  Superior  Oil  &  Gas  v.  Mehlin,  25  Okla. 
809,  108  Pac.  545,  138  Am.  St.  Rep.  942;  Frank  Oil  Co.  v.  Belle- 
view  Gas  &  Oil  Co.,  29  Okla.  719,  119  Pac.  260,  43  L.  R.  A. 
(N.  S.),  487;  Paraffine  Oil  Co.  v.  Cruce,  63  Okla.  95,  162  Pac. 
716,  14  A.  L.  R.  952;  Bearman  v.  Dux  Oil  &  Gas.  Co.,  64  Okla. 
147,  166  Pac.  199 ;  New  State  Oil  &  Gas  Co.  v.  Dunn,  75  Okla. 
141,  182  Pac.  514;  Curtis  v.  Harris,  76  Okla.  226,  184  Pac.  574; 
Prowant  v.  Sealy,  77  Okla.  244,  187  Pac.  235;  Garfield  Oil  Co. 
v.  Champlin,  78  Okla.  91,  189  Pac.  514 ;  Carder  v.  Blackwell  Oil 
&  Gas  Co.,  201  Pac.  252 ;  McKinley  v.  Teagins,  198  Pac.  997. 

A  covenant  in  an  oil  and  gas  lease  that  the  lessors,  in  any 
deed  hereafter  executed  by  them,  will  prohibit  any  drilling  for 
oil  or  gas  on  any  land  hereafter  conveyed  in  a  certain  addition 
does  not  prohibit  the  lessors  from  leasing  said  tract  for  the 
purpose  of  drilling  oil  and  gas  wells.  Test  Oil  Co.  v.  La  Tour- 
ette,  19  Okla.  214,  91  Pac.  1025. 

Where  by  the  terms  of  a  lease  the  lessor  was  to  receive  one- 
tenth  portion  from  each  gas  well,  when  utilized  and  sold  off 
the  premises,  was  construed  to  mean  one-tenth  of  the  gross  pro- 
ceeds from  each  well  when  the  gas  was  sold.  Barton  v.  Laclede 
Oil  &  Mining  Co.,  27  Okla.  416,  112  Pac.  965. 


178  OKLAHOMA  OIL  AND  GAS  LAWS 

A  condition  subsequent  operates  upon  estates  already  created 
and  vested,  and  renders  them  liable  to  be  defeated;  while  a 
condition  precedent  is  one  that  must  be  performed  before  the 
estate  can  vest  or  be  enlarged.  A  void  condition  subsequent 
in  a  lease  contract  cannot  operate  to  defeat  an  estate  already 
vested  thereunder,  but  a  void  condition  precedent  prevents 
any  estate  from  vesting  and  renders  the  lease  void,  unless  the 
condition  is  performed.  Wellsville  Oil  Co.  v.  Miller,  44  Okla. 
492,  145  Pac.  344,  150  Pac.  186. 

A  lease  which  grants  "all  the  oil  and  gas"  under  the  leased 
land,  together  with  the  right  to  enter  "at  all  times"  for  the 
purpose  of  "drilling  and  operating"  to  erect  and  maintain 
structures,  pipe  lines,  and  machinery  necessary  for  the  "pro- 
duction and  transportation"  of  oil  and  gas,  and  to  use  suffi- 
cient water,  oil  and  gas  to  run  the  necessary  engines  for  the 
"prosecution  of  said  business,"  which  reserves  to  the  lessor 
substantial  royalties  in  kind  and  in  money  on  the  oil  produced 
and  saved  and  the  gas  used  off  the  premises,  which  shows  that 
the  promise  of  these  royalties  was  the  controlling  inducement 
to  the  grant,  and  which,  while  expressly  requiring  that  drilling 
commence  within  90  days  from  the  date  of  said  lease,  did  not 
expressly  define  the  measure  of  diligence  to  be  exercised  in 
the  work  of  development  and  production  after  the  expiration 
cf  that  period,  contains  a  covenant  by  the  lessee,  arising  by 
necessary  implication  from  the  nature  of  the  lease  and  the 
other  stipulations  therein  contained,  that,  if  during  the  term 
of  the  lease,  oil  and  gas,  one  or  both,  are  found  in  paying 
quantities,  the  work  of  development  and  production  shall  be 
continued  with  reasonable  diligence;  that  is,  along  such  lines 
as  will  be  reasonably  calculated  to  make  the  extraction  of 
oil  and  gas  from  the  leased  land  of  mutual  advantage  and 
profit  to  the  lessor  and  lessee.  Indiana  Oil,  Gas  •&  Develop- 
ment Co.  v.  McCrory,  24  Okla.  136,  140  Pac.  610. 

In  pleading  the  performance  of  conditions  precedent  in  a 
contract,  it  is  sufficient  to  state  in  substance  that  the  party 


DIGEST  OP  CASKS  179 

duly  performed  all  the  conditions  on  his  part.     Cahill  v.  Pine 
Creek  Coal  Co.,  40  Okla.  176,  136  Pac.  1100. 

A  clause  in  an  oil  and  gas  lease  reading  aa  follows:  "Pro- 
vided, however,  that  if  a  well  is  not  drilled  on  said  premises, 
within  one  year  from  the  date  hereof,  then  this  lease  and 
agreement  shall  be  null  and  void,  unless  the  party  of  the 
second  part,  within  sixty  days  from  the  beginning  of  each 
and  every  year  after  the  expiration  of  the  term  above  men- 
tioned for  the  drilling  of  a  well,  shall  pay  a  rental  of  25  cents 
per  acre,  until  a  well  is  drilled  thereon,  or  until  this  lease 
is  canceled,  as  herein  provided,"  does  not  obligate  the  lessee 
to  pay  rent  for  delay  in  commencing  to  drill  for  oil  and  gas, 
said  grant  in  the  lease  amounting  only  to  an  option  to  the 
lessee  to  explore  for  oil  and  gas,  and  preventing  the  lessor, 
after  receiving  the  consideration  for  the  first  year,  from  leas- 
ing to  another  during  such  time,  and  after  receiving  a  second 
or  subsequent  payment  from  leasing  to  another  until  such 
delay  period  had  expired,  the  lessee  having  the  option  by 
continuing  to  pay  such  yearly  payments  to  prevent  the  for- 
feiture of  the  lease.  Deming  Inv.  Co.  v.  Lanham,  36  Okla.  773, 
130  Pac.  260,  44  L.  K.  A.  (N.  S.)  50,  and  note. 

The  contract  or  lease  examined,  and  held  to  be  an  ordinary 
oil  and  gas  lease  contract,  and  subject  to  the  same  rules  of 
construction.  It  vests  no  right  in  the  lessee  to  the  real  estate, 
nor  any  interest  therein  or  right  thereto,  save  to  explore  for 
oil,  etc.  Kelly  v.  Harris,  62  Okla.  236,  162  Pac.  219. 

In  the  absence  of  contraiy  expression  in  the  lease,  a  lessee  in 
an  oil  and  gas  lease  has  only  such  rights  to  the  surface  of  the 
leased  land,  and  must  protect  the  surface  rights  in  so  far  as 
such  incident  necessity  does  not  exist.  Pulaski  Oil  Co.  v. 
Conner,  62  Okla.  211,  162  Pac.  464. 

Where  the  language  of  the  lease  was  as  much  that  of  the 
lessee  as  that  of  the  lessors,  the  lease  will  be  construed  most 
strongly  against  the  lessee,  so  as  to  promote  development  and 
prevent  delay  and  unproductiveness,  looking  to  all  parts  of 


180  OKLAHOMA  OIL  AND  GAS  LAWS 

the  instrument  in  the  light  of  the  facts  contained  in  the 
record.  Paraffine  OH  Co.  v.  Cruce,  63  Okla.  95,  162  Pac.  716, 
14  A.  L.  B.  952— Note. 

Where  the  lessor  extended  the  time  for  commencing  an 
oil  and  gas  well,  under  the  lease,  six  months  after  the  expira- 
tion of  the  time  originally  fixed,  in  consideration  of  $1  and 
of  the  lessee's  agreement  to  drill  first  on  adjoining  land  leased 
to  him  by  the  lessor's  wife,  the  extension  was  valid,  and 
founded  on  sufficient  consideration.  Downey  v.  Gooch,  240 
Fed.  527. 

The  lessee  under  a  valid  oil  and  gas  lease,  which  does  not 
grant  the  lessee  any  estate  in  the  oil  and  gas,  but  simply  a 
right  to  prospect  therefor,  is  nevertheless  entitled  to  equitable 
relief  to  prevent  the  removal  of  the  oil  and  gas  by  a  subsequent 
lessee.  Id. 

An  oil  and  gas  lease  of  lands  within  a  district  not  yet 
developed,  where  there  was  little  likelihood  of  the  oil  being 
drained  through  wells  on  adjoining  lands,  for  a  term  of  one 
year,  and  so  much  longer  as  oil  and  gas  were  produced  in 
paying  quantities,  which  required  the  lessee  to  commence 
operations  within  45  days,  and  to  drill  to  a  depth  of  2,800 
feet  unless  oil  or  gas  was  found  in  paying  quantities  at  a 
less  depth,  is  not  so  inequitable  against  the  lessor  as  to  deprive 
lessee  of  his  right  to  injunction  to  restrain  removal  of  oil 
and  gas  by  a  subsequent  lessee,  nor  does  an  extension  for  six 
months  of  the  time  within  which  to  commence  operations 
render  it  inequitable.  Id. 

Where  a  cash  bonus  of  $130  was  paid  for  an  oil  and  gas 
lease  on  130  acres  of  land  which  provided  that  lessee  should 
complete  a  well  within  one  year  from  date,  or  pay  an  annual 
rental  of  $130,  and  further  providing  that  the  lessee  might 
at  any  time  on  the  payment  of  one  dollar  surrender  the  leased 
premises  and  terminate  all  future  liabilities  under  the  lease, 
held,  that  the  cash  bonus  supported  each  and  all  the  covenants 
of  the  lease,  and  held  further  that  the  presence  of  the  sur- 


DIGEST  OF  CASES  181 

render  clause  did  not  render  the  lease  void  for  want  of 
mutuality  nor  confer  on  the  lessor  the  right  to  terminate  said 
lease  at  will.  Pucini  v.  Bumgarner,  —  Okla.  — ,  175  Pac.  537. 

Where  a  cash  bonus  is  paid  for  an  oil  and  gas  lease  covering 
160  acres,  which  provided  that  the  lessee  should  commence 
the  drilling  of  a  well  within  12  months  from  the  date  thereof, 
or  pay  $100  for  each  additional  12  months  such  completion  is 
delayed,  and  further  provides  that  upon  payment  of  $1  the 
lessee  shall  have  the  right  to  surrender  the  lease  for  cancella- 
tion, after  which  all  liabilities  thereafter  to  accrue  shall  cease 
and  determine,  held,  that  such  cash  bonus  supports  each  and 
all  the  covenants  in  the  lease,  and  held,  further,  that  the 
presence  of  a  surrender  clause  in  said  lease  did  not  render 
the  same  void  for  want  of  mutuality  nor  confer  on  the  lessor 
the  right  to  terminate  said  lease  at  will.  Carter  Oil  Co.  v. 
Tiffin,  —  Okla.  — ,  176  Pac.  912. 

The  owners  of  a  tract  of  60  acres  of  land  executed  an 
instrument,  denominated  an  oil  and  gas  lease,  by  the  terms 
of  which  they  granted,  demised,  leased,  and  let  the  same  to 
another,  his  heirs,  executors,  administrators,  and  assigns,  for 
the  sole  and  only  purpose  of  mining  and  operating  for  oil 
and  gas,  and  of  laying  pipe  lines,  and  of  building  tanks,  power 
stations,  and  structures  thereon,  to  procure  and  take  care  of 
said  products.  The  grant  was  for  a  term  of  five  years  from 
date  and  as  long  thereafter  as  oil  or  gas,  or  either  of  them, 
was  produced  by  said  party.  The  instrument  recited  a  con- 
sideration of  $1  paid  by  the  lessee  to  the  lessors.  The  lessee 
agreed  to  deliver  to  lessors  one-eighth  of  the  oil  produced  and 
saved  from  the  premises;  to  pay  certain  stipulated  sum  per 
annum  for  each  gas  well,  and  for  gas  utilized  from  each  oil 
well.  The  lessee  further  agreed  to  complete  a  well  on  said 
premises  within  six  months,  or  pay  at  the  rate  of  $15  for  each 
additional  month  such  completion  was  delayed.  The  instru- 
ment contained  the  further  provision  that  the  lessee  should 
have  the  right  at  any  time,  on  payment  of  $1  to  the  lessors, 
to  surrender  the  lease  for  cancellation,  after  which  all  pay- 


182  OKLAHOMA  On.  AND  GAS  LAWS 

ments  and  liabilities  thereafter  to  accrue  under  and  by  virtue 
of  its  terms,  should  cease  and  determine.  In  an  action  by 
the  owners  of  the  land  to  cancel  the  instrument  and  remove 
same  as  a  cloud  on  their  title,  commenced  prior  to  the  expira- 
tion of  the  term  of  five  years,  it  appearing  that  no  well  had 
been  commenced,  but  that  the  lessee  had  made  timely  pay- 
ments or  tender  of  all  sums  stipulated  to  be  paid  for  delay 
in  completing  a  well,  held,  (a)  that  the  consideration  recited 
in  the  face  of  the  instrument  is  sufficient  to  support  the  grant 
of  the  exclusive  right  to  occupy  the  land  and  explore  the 
same  for  oil  and  gas  and  to  take  and  remove  such  as  may 
be  found  therein  for  the  entire  term  specified,  and  also  the 
right  of  the  lessee,  on  compliance  with  the  conditions  expressed, 
to  terminate  the  same;  (b)  that  the  agreement  is  not  void 
for  the  want  of  mutuality;  (c)  that,  although  no  well  had  been 
commenced  on  the  premises,  the  lessors  had  not  the  option 
to  refuse  timely  tender  of  payments  for  delay  in  completing 
a  well  and  terminate  the  grant,  or  to  compel  a  surrender 
thereof;  (d)  that  the  instrument  does  not  create  a  tenancy 
at  will  within  the  operation  of  the  rule  that  an  estate  at  the 
will  of  one  party  is  equally  at  the  will  of  the  other.  Rich  v. 
Doneghy,  —  Okla.  —,177  Pac.  86. 

An  oil  and  gas  lease  on  80  acres  of  land  for  a  term  of  10 
years,  and  as  long  thereafter  as  oil  or  gas  is  produced,  executed 
for  a  cash  consideration  or  bonus  of  $2,100,  and  $2,000  to  be 
paid  out  of  25  per  cent  of  the  working  interest  of  oil  pro- 
duced, and  which  provides  for  a  royalty  to  the  lessee  of  one- 
eighth  of  the  oil  and  a  stipulated  sum  for  each  gas  well,  the 
lessee  agreeing  to  complete  a  well  in  90  days  from  date,  or 
pay  at  the  rate  of  $20  quarterly  in  advance  for  each  additional 
three  months  such  completion  is  delayed,  is  supported  by  a 
sufficient  consideration,  and  is  not  void  for  want  of  mutuality, 
notwithstanding  the  further  agreement  that,  upon  payment  of 
$1  at  any  time  after  giving  three  months'  notice,  the  lessee 
should  have  the  right  to  surrender  the  lease  for  cancellation, 
after  which  all  payments  and  liabilities  thereafter  to  accrue 


DIGEST  OF  CASES  183 

under  and  by  virtue  of  its  terms  should  cease  and  determine, 
and  the  grant  become  absolutely  null  and  void ;  and  such  right 
given  the  lessee  to  terminate  does  not  confer  a  corresponding 
right  of  termination  upon  the  lessors.  Eastern  Oil  Co.  v. 
Beatty,  —  Okla.  — ,  177  Pac.  104. 

S.  executed  an  oil  and  gas  lease  covering  certain  lands  in 
Lincoln  County,  Okla.,  to  H.  for  the  term  of  five  years,  for 
a  cash  consideration  of  $240.  The  lessee  agreed  to  pay  to 
lessor  one-eighth  of  the  oil  produced,  and  to  pay  a  stipulated 
sum  per  annum  for  each  gas  well;  and,  further,  to  complete 
a  well  on  said  premises  within  12  months  from  the  date  of 
the  lease,  or  pay  $240  quarterly  in  advance  for  each  year 
such  completion  was  delayed.  The  lease  contained  a  further 
provision  that  upon  the  payment  of  $1  at  any  time  to  the 
lessor,  the  lessee  should  have  the  right  to  surrender  the  lease 
for  cancellation.  In  an  action  brought  by  the  lessor  to  cancel 
the  lease  for  the  reason  that  the  same  was  unilateral  and  void, 
held,  that  the  cash  bonus  paid  supports  each  and  all  the 
covenants  of  the  lease;  that  the  agreement  is  not  void  for 
want  of  mutuality ;  that  although  no  well  had  been  commenced 
on  the  premises,  the  lessor  had  not  the  option  to  refuse  timely 
tender  of  payments  and  terminate  the  lease.  Magnolia 
Petroleum  Co.  v.  Saylor,  —  Okla.  — ,  180  Pac.  861. 

Where  a  cash  bonus  of  $1  is  paid  on  an  oil  and  gas  lease, 
which  provides  that  the  lessee  shall  commence  drilling  a  well 
within  one  year  from  the  date  thereof,  or  pay  an  annual  rental 
of  $20,  and  further  provides  that  the  lessee  might  at  any  time 
upon  the  payment  of  the  further  sum  of  $1  to  the  lessor  sur- 
render the  lease  for  cancellation,  and  all  payments  and 
liabilities  thereafter  to  accrue  to  cease  and  terminate,  held, 
that  the  $1  cash  bonus  supports  each  and  all  the  covenants 
in  the  lease,  and  that  the  presence  of  the  surrender  clause 
therein  did  not  render  the  same  void  for  want  of  mutuality, 
nor  confer  on  the  lessor  the  right  to  terminate  said  lease  at 
will.  "Maud  Oil  &  Gas  Co.  v.  Bodkin,  75  Okla.  6.  180  Pac.  959. 


184  OKLAHOMA  OIL  AND  GAS  LAWS 

Where  a  lease  provides  for  payment  of  money  by  the  lessee 
of  an  oil  lease,  with  a  privilege  of  surrendering  it  on  payment 

l<of  $. ,"  such  provision  is  of  no  effect,  where  the  amount 

of  the  consideration  to  be  paid  was  not  inserted  in  the  blank. 
Riddle  v.  Keechi  Oil  &  Gas  Co.,  —  Okla,  — ,  176  Pac.  737. 

Where  the  written  portion  of  an  oil  and  gas  lease  is  at 
variance  with  the  printed  part,  the  former  should  control  and 
govern  in  the  construction  thereof  as  best  indicative  of  the 
intent  of  the  parties.  Johnston  v.  Shaffer,  —  Okla.  — ,  176 
Pac.  901. 

In  construing  an  oil  and  gas  lease,  where  this  condition 
exists,  it  is  proper  to  look  at  the  purposes  and  objects  to  be 
gained  by  its  execution  in  order  to  ascertain  the  intent  of 
the  parties  as  expressed  in  the  lease.  Johnston  v.  Shaffer, 
—  Okla.  — ,  176  Pac.  901. 

Record  examined,  and  held,  that  the  primary  purpose  of 
the  contracts  by  which  K.  reserved  for  15  years  the  oil  and 
gas  on  the  lands  purchased  by  M.  and  K.,  was  not  the  pay- 
ment to  them  of  royalties  from  oil  and  gas  to  be  found  thereon, 
but  to  adjust  the  respective  rights  of  the  parties  in  the  land, 
and  to  enable  M.  and  K.  to  obtain  a  merchantable  title  to  the 
fee.  Kroeger  v.  Martin,  75  Okla.  8,  180  Pac.  955. 

Where  an  oil  and  gas  mining  lease  covers  160  acres  of  land, 
120  acres  thereof  are  contiguous,  and  the  other  40-ac.re  tract 
is  located  one-half  mile  therefrom,  and  the  lessee  assigns  the 
40-acre  tract,  and  the  assigns  bring  in  a  producing  well  pro- 
ducing oil  and  gas  in  paying  quantities  within  the  one-year 
period  stipulated  for  in  the  -lease  and  pays  the  royalties 
reserved  to  the  owner  of  the  land,  which  are  accepted  by  such 
owner  according  to  the  terms  of  the  lease,  and  the  lease  con- 
tains the  stipulation  "that  this  lease  shall  remain  in  full  force 
for  the  term  of  five  years  from  this  date,  and  as  long  there- 
after as  oil  and  gas  or  either  of  them  is  produced  therefrom 
by  the  party  of  the  second  part,  successor  or  assigns,"  these 


DIGEST  OP  CASES  185 

facts  do  not  make  the  lease  a  separate  lease  upon  each  tract 
of  land,  but  the  same  remains  a  lease  upon  the  entire  160 
acres,  and  the  drilling  of  such  well  on  any  portion  thereof 
and  the  payment  of  the  royalties  extends  the  life  of  the  lease 
upon  the  entire  160  acres.  Gypsy  Oil  Co.  v.  Cover,  78 
Okla.  158,  189  Pac.  540.  11  A.  L.  R.  129— Note. 

After  gas  was  found  upon  the  leased  premises  within  five 
years  from  the  date  thereof  in  paying  quantities,  the  lessee 
thereby  became  vested  with  a  limited  estate  in  the  leased 
premises  for  further  operations  in  accordance  with  the  terms 
of  the  lease.  Id. 

(2)  Extension  or  Renewal. 

An  oil  and  gas  lease  giving  the  lessee  the  option  to  pay  a 
certain  sum,  and  thus  extend  the  lease,  is  operative  against 
the  lessor  during  such  extension  only  upon  the  payment  of 
such  sum ;  contract  rights  being  correlative  and  mutual.  Frank 
Oil  Co.  v.  Belleview  Gas  &  Oil  Co.,  29  Okla.  719,  119  Pac.  260, 
43  L.  R.  A.  (N.  S.)  487. 

Under  an  "unless  lease,"  the  lessee  of  oil  lands  so  long  as 
he  pays  the  rentals  in  the  manner  provided,  has  an  option 
to  continue  the  lease  in  force,  and  it  is  subject  to  termination 
at  his  will,  which  privilege  he  may  exercise  by  a  failure  to 
pay  the  stipulated  rental,  in  which  event  the  lease  automatically 
terminates.  The  lessor  has  no  right  to  terminate  the  lease 
while  the  lessee  complies  with  its  terms.  Northwestern  Oil  & 
Gas  Co.  v.  Branine,  —.  Okla.  — ,  175  Pac.  533. 

Under  an  "or  lease,"  the  payment  of  rentals  by  the  lessee 
of  oil  lands,  according  to  the  lease  is  not  necessary  to  keep 
it  alive  from  time  to  time,  nor  does  failure  to  pay  auto- 
matically terminate  the  contract,  as  under  an  "unless  lease." 
He  may,  however,  terminate  the  lease  at  any  time  by  exer- 
cising the  right  contained  in  the  surrender  clause  and  paying 
the  rentals  due.  Northwestern  Oil  &  Gas  Co.  v.  Branine, 
—  Okla.  — ,  175  Pac.  533. 


186  OKLAHOMA  OIL  AND  GAS  LAWS 

Where  an  oil  and  gas  lease  contains  a  provision  that  it 
shall  be  operative  for  the  period  of  five  years  from  date,  or 
so  long  as  gas,  oil,  or  other  minerals  are  found  thereon  in 
paying  quantities  in,  under,  and  upon  said  land,  it  is  a  condi- 
tion precedent  to  the  extension  of  lessee's  right  to  continue 
operations  beyond  the  five  years  that  oil  and  gas  or  either  of 
them  should  be  found  upon  the  premises  in  paying  quantities 
within  five  years  from  the  date  of  the  lease.  Roach  v.  Junc- 
tion Oil  &  Gas  Co.,  —  Okla.  — ,  179  Pac.  934. 

After  gas  was  found  upon  the  leased  premises  within  five 
years  from  the  date  thereof  in  paying  quantities  the  lessee 
thereby  became  vested  with  a  limited  estate  in  the  leased 
premises  for  further  operations  in  accordance  with  the  terms 
of  the  lease.  Roach  v.  Junction  Oil  &  Gas  Co.,  —  Okla.  — , 
179  Pac.  934;  Parks  v.  Sinai  Oil  &  Gas  Co.,  —  Okla.  — , 
201  Pac.  517. 

(3)  Surrender,  Abandonment  or  Forfeiture. 

Because  forfeitures  are  usually  harsh  and  oppressive  and 
because  they  can  ordinarily  be  enforced  at  law,  courts  of  equity 
generally  refuse  to  aid  in  their  enforcement;  but  the  rule 
is  not  absolute  or  inflexible.  Its  influence  and  operators  do 
not  extend  beyond  the  reason  which  underlies  it,  and  in  cases 
otherwise  cognizable  in  equity  there  is  no  insuperable  objec- 
tion to  the  enforcement  of  a  forfeiture  in  a  court  of  equity 
when  that  is  more  consonant  with  the  principles  of  right, 
justice,  and  morality  than  to  withhold  equitable  relief. 
Indiana  Oil,  Gas  &  Development  Co.  v.  McCrory,  42  Okla.  136, 
140  Pac.  610. 

A  court  of  equity  will  decree  a  forfeiture  of  an  oil  and 
gas  lease  on  account  of  a  breach  of  an  implied  covenant  to 
diligently  operate  and  develop  the  property  when  such  for- 
feiture will  effectuate  justice.  The  granting  of  such  relief 
depends  upon  the  facts  and  circumstances  surrounding  each 
particular  case.  Id. 


DIGEST  OP  CASES  187 

Where  an  oil  and  gas  lease  provided  "that  if  a  well  is  not 
drilled  on  said  premises  in  one  year  from  date  hereof,  then 
this  lease  and  agreement  shall  be  null  and  void,  unless  the 
party  of  the  second  part,  within  each  and  every  year  in  advance 
after  the  drilling  of  a  well,  shall  pay  a  rental  of  $2.50  per 
acre  for  the  first  year, ' '  etc.,  held,  that  such  provision  amounts 
to  an  option,  and  gives  the  lessor  the  right  to  cancel  unless 
the  conditions  are  complied  with.  Mitchell  v.  Probst,  52  Okla. 
10,  152  Pac.  597. 

Where  a  party  leases  a  tract  of  land  for  the  purpose  of 
mining  and  operating  for  oil  and  gas,  the  lessee  contracting 
to  deliver  to  the  pipe  line  with  which  such  well  or  wells  may 
connect  one-eighth  of  all  oil  saved  from  said  premises,  and 
to  pay  $150  each  year  for  the  product  of  each  gas  well  while 
the  same  is  being  used  off  the  premises,  if  oil  and  gas  are 
found  on  said  premises,  also  paying  cash  in  hand  the  sum  of 
$200  and  agreeing  to  commence  within  30  days  from  the  date 
of  said  lease  a  well  on  an  adjoining  tract  of  land  belonging 
to  one  Gibson  and  in  which  the  lessor  had  no  direct  interest, 
end  the  lease  containing  the  following  provision:  "If  no  well 
is  commenced  on  said  premises  within  one  year  from  this  date, 
then  this  grant  shall  become  null  and  void,  unless  second 
party  shall  pay  to  the  first  party  eighty  ($80.00)  dollars  for 
each  year  hereafter  such  completion  is  delayed,  said  rental  to 
be  paid  quarterly  in  advance.  Party  of  the  second  part  further 
agrees  to  protect  the  lines  of  the  land  above  described  by 
immediately  offsetting  all  wells  drilled  within  150  feet  of  said 
land,  unavoidable  delays  excepted.  It  is  further  provided  that 
this  grant  shall  become  null  and  void  unless  a  well  is  com- 
menced within  thirty  days  from  the  date  hereof  on  the  fol- 
lowing land  belonging  to  Benjamin  L.  Gibson."  Held,  that 
this  provision  did  not  bind  the  lessee  to  pay  any  rent  for  the 
land  or  for  delay  in  commencing  to  operate  for  oil  and  gas, 
said  grant  or  lease,  amounting  to  an  option  preventing  the 
lessor,  after  receiving  the.  consideration,  for  the  first  year, 
from  leasing  to  another  during  sueh  time.,  nnd  after  receiving 
a  quarterly  payment  from  leasing  to  another  until  such  delay 


188  OKLAHOMA  OIL  AND  GAS  LAWS 

period  of  a  quarter  had  expired,  the  lessee  having  the  option, 
by  continuing  to  pay  such  quarterly  payments,  to  continually 
renew  such  option  by  such  succeeding  payments,  the  word 
''year"  being  used  merely  as  a  basis  to  fix  the  amount  of 
the  quarterly  payments.  Frank  Oil  Co.  v.  Belleview  Gas  & 
Oil  Co.,  29  Okla.  719,  119  Pac.  260,  43  L.  R.  A.  (N.  S.)  487. 

The  cash  bonus  of  $120  supported  each  and  every  provision 
in  an  oil  and  gas  lease,  and  said  lease  being  an  indivisible 
contract,  the  cash  bonus  not  only  supported  the  full  term  of 
the  lease,  but  the  option  of  the  lessee  to  keep  the  lease  alive 
by  tendering  delay  rentals.  Shaffer  v.  Marks,  241  Fed.  139. 

A  voluntary  surrender  of  an  oil  and  gas  mining  lease,  where 
the  mode  of  effecting  such  surrender  is  prescribed,  unless 
the  consent  of  all  parties  thereto  be  given  to  a  surrender  in 
some  other  manner,  and  if  such  lease  be  that  of  a  guardian 
for  his  ward,  the  consent  of  the  county  court  having  jurisdic- 
tion of  the  estate  is  necessary  to  render  valid  any  mode  of 
surrender  other  than  that  prescribed  in  the  lease.  Ardizzone 
v.  Archer,  —  Okla.  — ,  160  Pac.  446. 

Where  such  lease  contains  a  clause  reserving  to  the  lessee 
the  right  at  any  time  to  remove  all  his  property  and  reconvey 
the  premises,  and  thereby  render  such  lease  null  and  void, 
held,  that  a  corresponding  right  existed  in  the  lessor  before 
development  to  compel  a  surrender.  Melton  v.  Cherokee  Oil 
&  Gas  Co.,  —  Okla.  — ,  170  Pac.  689. 

Where  such  lease  reserves  to  the  lessee  and  his  assigns  the 
right  at  any  time  after  four  months,  on  the  payment  of  $1 
and  all  payable  obligations  then  due  the  lessor  or  his  assigns, 
to  surrender  the  lease,  if  not  tested,  for  cancellation,  held  that, 
as  said  lease,  construed  as  a  whole,  confers  on  the  lessee  an 
option  to  complete  a  well  within  four  months  or  pay  for  delay 
and  a  further  option  to  surrender  at  any  time  after  four 
months,  and  thereby  avoid  doing  both,  it  was  voidable  at 
the  option  of  the  lessor  at  any  time  after  four  months  for 
lack  of  mutuality,  in  that  it  imposed  no  legal  obligation  on 


DIGEST  OF  CASES  189 

the  lessee;  that,  as  prospective  royalties  were  the  sole  con- 
sideration for  the  execution  of  the  lease  on  the  part  of  the 
lessor,  payment  of  which  could  be  defeated  by  a  surrender 
thereof  by  the  lessee,  the  lease  was  nudum  pactum;  and  that, 
as  the  same  reserves  to  the  lessee  the  right  to  surrender  the 
lease  at  any  time  after  four  months  before  development,  a 
corresponding  right  exists  in  the  lessor  to  compel  a  surrender. 
Brown  v.  Wilson,  58  Okla.  392,  160  Pac.  94. 

Where  the  lessor  after  forfeiture  incurred  brought  suit  to 
have  the  same  judicially  declared  and  to  clear  his  title  and 
thereafter  executed  a  second  lease  on  the  same  premises  and 
thereafter  parted  with  his  interest  as  lessor  in  the  demised 
premises,  evidence  examined,  and  held,  that  the  court  erred 
in  refusing  to  grant  such  relief  to  him  and  to  all  parties  in 
interest  under  the  second  lease.  Brown  v.  Wilson,  58  Okla. 
392,  160  Pac.  94. 

Precedent  conditions  must  be  literally  performed,  and  even 
a  court  of  chancery  Avill  never  vest  an  estate,  when  by  reason 
of  a  condition  precedent,  it  will  not  vest  in  law.  It  cannot 
relieve  from  the  consequences  of  a  condition  precedent  unper- 
formed. Paraffine  Oil  Co.  v.  Cruce,  63  Okla.  95,  162  Pac.  716, 
14  A.  L.  R.  952. 

Where  a  drilling  contract  by  the  terms  of  which  an  oil 
company,  in  consideration  of  the  assignment  to  it  of  a  one- 
half  interest  in  an  oil  and  gas  lease,  specifically  undertook 
to  commence  and  with  diligence  drill  a  well  on  the  premises 
into  a  designated  sand,  contained  a  clause  providing  that  the 
failure  to  commence  and  complete  such  well  should  work  a 
forfeiture  and  render  the  contract  null  and  void,  held,  that 
such  provision  was  for  the  benefit  of  the  owner  of  the  lease- 
hold interest,  and  gave  to  him  alone  the  option  to  declare  a 
forfeiture  upon  failure  of  the  company  to  discharge  its  obliga- 
tion to  drill,  and  that  the  company  could  not  by  virtue  of 
such  forfeiture  clause,  without  the  consent  of  such  owner, 
terminate  the  contract  by  its  own  default,  and  thus  escape 


190  OKLAHOMA  OIL  AND  GAS  LAWS 

liability  for  resultant  damages.    Lavery  v.  Mid-Continent  Oil 
Development  Co.,  62  Okla,  206,  162  Pac.  737. 

Provision  in  an  oil  and  gas  lease  that  lessee,  on  payment 
of  a  certain  sum  and  accrued  liabilities,  might  surrender 
premises  and  terminate  its  liability,  did  not  authorize  lessor 
to  terminate  lease  at  will.  Northwestern  Oil  &  Gas  Co.  v. 
Branine,  —  Okla.  — ,  175  Pac.  533. 

Where  the  surrender  clause  in  an  oil  and  gas  lease  provides 
that  such  surrender  clause  and  the  option  therein  contain  ,3<1 
shall  cease  and  become  absolutely  inoperative  upon  the  institu- 
tion of  any  suit  by  the  lessee  to  enforce  the  lease  or  any  oi 
its  terms  or  to  recover  possession  of  the  leased  lands  or  any 
part  thereof,  against  or  from  the  lessor,  his  heirs,  persona' 
representatives,  or  assigns,  or  any  other  person,  and  such  con- 
dition is  supported  by  a  sufficient  consideration,  held,  that  said 
provision  is  valid  and  binding,  and,  when  lessee  files  suit  to 
enjoin  lessor  from  releasing  said  premises  and  further  inter- 
fering with  lessee's  rights  under  the  lease,  that  said  surrender 
clause  becomes  inoperative,  and  the  lessee  thereby  becomes 
bound  to  perform  the  covenants  of  the  lease  and  is  entitled 
to  be  protected  in  his  rights  under  the  lease.  Pucini  v.  Bum- 
garner,  —  Okla.  — ,  175  Pac.  537. 

•  Provision  in  oil  and  gas  lease  entitling  a  lessee  on  payment 
of  $1  to  surrender  the  lease  for  cancellation  and  thereby 
terminate  all  his  liabilities  did  not  permit  the  lessor  to 
terminate  the  lease  at  will.  Carter  Oil  Co.  v.  Tiffin,  —  Okla. 
— ,  176  Pac.  912;  Maud  Oil  &  Gas  Co.  v.  Bodkin,  75  Okla.  6, 
180  Pac.  959. 

Under  oil  and  gas  lease  for  a  term,  requiring  the  lessee 
to  complete  the  well  within  six  months  or  make  fixed  pay- 
ments for  each  month's  delay,  and  entitling  the  lessee  to 
surrender  the  lease  on  payment  of  $1,  the  lessor  though  no 
well  has  been  commenced,  could  not  refuse  timely  tender  of 
monthly  payments  and  terminate  lease  or  compel  its  surrender. 
Rich  v.  Doneghey,  —  Okla.  — ,  177  Pac.  86,  3  A.  L.  R.  352. 


DIGEST  OP  CASES  191 

An  oil  and  gas  lease  in  terms  permitting  the  lessee  to  sur- 
render did  not  give  lessor  a  corresponding  right  of  termina- 
tion. Eastern  Oil  Co.  v.  Beatty,  —  Okla.  — ,  177  Pac.  104. 

The  presence  of  a  surrender  clause  in  an  oil  and  gas  lease 
does  not  give  the  lessor  the  right  to  terminate  the  lease  where 
the  lessee  has  not  breached  its  terms.  McCray  v.  Miller,  73 
Okla.  16,  184  Pac.  781. 

Whether  or  not  a  lessee  of  an  oil  and  gas  lease  has  abandoned 
a  lease  depends  upon  the  facts  and  circumstances  of  the  par- 
ticular case.  An  unexplained  cessation  of  operations  may  give 
rise  to  a  fair  presumption  of  abandonment  and  it  may  be  that, 
standing  alone,  a  court  as  a  matter  of  law  may  declare  the 
lease  abandoned.  Strange  v.  Hicks,  78  Okla.  1,  188  Pac.  347. 

Where  the  lessee  ceases  operations  under  a  lease,  such  cesser 
alone  is  not  sufficient  to  establish  abandonment.  As  to  whether 
or  not  the  lessee  has  abandoned  the  premises  depends  upon  all 
the  circumstances  of  the  particular  case.  If  the  lessor 
acquiesces  in  the  cesser  of  operations  or  fails  to  act  in  a 
manner  indicating  he  considered  the  lease  premises  abandoned, 
he  may  be  restrained  from  interfering  with  the  lessee  in  remov- 
ing casing,  pipes,  and  other  improvements  erected  by  the 
lessee  upon  the  premises,  where  the  lease  specifically  gives 
the  lessee  the  right  to  remove  such  casing,  pipes,  and  other 
improvements  at  any  time.  Bennie  v.  Red  Star  Oil  Co.,  78 
Okla,  208,  190  Pac.  391. 

Where,  under  the  terms  of  an  oil  and  gas  mining  lease, 
the  right  is  reserved  by  the  lessee  to  cease  operations  when 
il  is  found  that  oil  or  gas  cannot  be  produced  in  paying 
quantities  thereon,  and  the  further  right  is  reserved  by  the 
lessee  to  remove,  at  any  time,  the  property  and  improvements 
placed  or  erected  in  or  upon  the  leased  premises,  the  latter 
had  the  same  right  to  go  upon  the  leased  premises  for  the 
purpose  of  removing  his  property  which  he  had  in  the  first 
instance  in  going  upon  the  property  for  the  purpose  of  develop- 


192  OKLAHOMA  OIL  AND  GAS  LAWS 

i 
P 

ing  the  same  under  the  lease,  provided  he  acts  within  a  reason- 
able time.    Sanders  v.  Davis,  79  Okla.  253,  192  Pac.  694. 

The  general  rule  is  that  a  court  of  equity  will  not  cancel 
an  oil  and  gas  lease  for  failure  to  comply  with  an  implied 
covenant  to  drill  offset  wells,  unless  notice  has  been  served 
upon  lessee  that  a  failure  to  protect  the  line  within  a  certain 
time  will  be  considered  grounds  for  forfeiture.  Wapa  Oil  & 
Dev.  Co.  v.  McBride  (Okla.),  201  Pac.  984. 

Because  of  the  peculiar  nature  of  leases  for  the  exploration 
and  production  of  oil  and  gas,  it  is  the  duty  of  the  lessee  to 
use  reasonable  diligence  to  obtain  production,  so  that  the 
income  contemplated  by  both  parties  may  be  obtained,  and 
a  cessation  of  operations,  lapse  of  time,  and  notice  of  non- 
production  may  operate  as  abandonment  of  the  lease  by  the 
lessee.  Tucker  v.  Canfield,  276  Fed.  385. 

In  a  suit  to  have  defendants  declared  trustees  for  the  benefit 
of  an  oil  and  gas  lease  subsequently  executed  to  defendants 
upon  the  same  premises  on  which  plaintiff  took  a  prior  lease 
by  assignment,  held  that  the  finding  of  the  court  that  plaintiff 
has  abandoned  the  lease,  and  that  the  lessors  have  accepted 
the  surrender,  was  not  overcome  by  evidence  showing  that 
when  gas  ceased  to  flow  in  the  well  drilled  by  plaintiff,  he 
refused  to  drill  any  deeper,  or  to  drill  another  well,  and  did 
nothing  towards  development  under  the  lease  for  more  than 
fifteen  months,  but  reasserted  his  right  under  the  lease  when 
defendants  drilled  the  well  deeper  and  struck  oil.  Tucker  v. 
Canfield,  276  Fed.  385. 

To  constitute  "abandonment"  in  respect  of  property,  there 
must  be  a  concurrence  of  the  intention  to  abandon,  and  an 
actual  relinquishment  of  the  property,  so  that  it  may  be 
appropriated  by  the  next  comer.  In  determining  whether  one 
has  abandoned  his  property  rights,  the  intention  is  the  first 
and  paramount  object  of  inquiry ;  for  there  can  be  no  abandon- 
ment without  the  intention  to  abandon.  Blackwell  Oil  &  Gas. 
Co.  v.  Whited,  81  Okla.  45,  196  Pac.  688. 


DIGEST  OP  CASES  193 

(4)  Testing  or  Working. 

Evidence  held  to  support  the  verdict  for  the  lessor  for 
damages  for  delay  by  the  lessee  in  drilling  an  oil  well.  Cohn 
v.  Clark,  48  Okla.  500,  150  Pac.  467,  L.  R.  A.  1916— B.  686. 

On  November  6,  1913,  lessors  leased  a  tract  of  land  for  oil 
and  gas  mining  purposes  to  the  P.  company,  which  thereafter 
assigned  certain  interests  therein  to  other  oil  companies. 
Section  3  fixed  the  term  of  the  lease  for  one  year,  "and  so 

long  thereafter  as  oil  or  gas  is  produced  from 

said  land"  by  the  lessee,  "its  successors  or  assigns,  in  accord- 
ance with  the  stipulations  of  6  and  7  of  this  contract." 

After 5  obligated  the  lessee  to  begin  operations  for  drill- 
ing in  30  days  and  to  diligently  prosecute  the  same  until  a 
test  well  was  completed,  6  provided:  "That  if  said  ter- 
ritory proves  productive,  then  the  lessee  to  complete  this  con- 
tract shall  drill  as  many  as  eight  wells  on  said  premises." 
The  test  well  proved  the  territory  productive  January  20,  1914, 
and  it  took  about  20  days  to  drill  a  well.  Held,  that  "if" 
means  "when,"  and  that  "then"  is  an  adverb  of  time  and 
means  "at  the  time,"  and  that,  at  the  time  the  territory  proved 
productive  by  the  drilling  of  the  test  well,  it  was  then  the 
duty  of  the  lessee  to  drill  as  many  as  eight  wells  upon  the 
premises  and  within  a  year  from  the  date  of  the  lease  as  a 
condition  precedent  to  the  extension  of  the  lease  beyond  the 
term  of  one  year  fixed  in  the  lease.  And,  whether  said  wells 
were  by  the  lessee  drilled  with  due  diligence  and  dispatch, 
having  in  view  the  interests  of  both  parties  to  the  lease,  and 
so  as  to  produce  all  the  oil  and  gas  that  may  be  reasonably 
produced  from  the  premises,  as  required  by  the  lease,  if 
available  as  a  defense,  was  a  question  of  fact;  and,  being 
found  adversely  to  defendant,  will  not  be  disturbed,  there 
being  no  evidence  reasonably  tending  to  support  the  finding. 
And  there  being  no  question  that  oil  was  found  in  paying 
quantities  in  the  first  well  drilled,  and  there  being  evidence 
reasonably  tending  to  support  the  finding  of  the  court,  in 
effect,  that  there  was  at  its  completion  a  profitable  market 


194  OKLAHOMA  OIL  AND  GAS  LAWS 

for  the  product  of  the  first  well,  the  lessee  cannot  escape  the 
forfeiture  of  the  lease,  declared  by  the  trial  court,  in  virtue 

of 11  of  the  lease,  for  failure  to  drill  as  many  as  eight 

wells  upon  the  premises  within  one  year  from  the  date  of 
the  lease,  under  the  plea  that  there  was  not  a  profitable  market 
at  its  completion  for  the  product  of  the  first  well.  Paraffine 
Oil  Co.  v.  Cruce,  63  Okla.  95,  162  Pac.  716,  14  A.  L.  R.  952. 

Where  the  object  of  the  operations  contemplated  by  an  oil 
and  gas  lease  is  to  obtain  a  benefit  or  profit  for  both  lessor 
and  lessee,  neither  is,  in  the  absence  of  a  stipulation  to  that 
effect,  the  arbiter  of  the  extent  to  which  or  the  diligence 
with  which  the  operations  shall  proceed;  but  both  are  bound 
by  the  standard  of  what,  in  the  circumstances,  would  be 
reasonably  expected  of  operators  of  ordinary  prudence,  having 
regard  to  the  interests  of  both.  Id. 

An  oil  and  gas  lease  provided  that  the  lessee  should  complete 
a  well  on  the  leased  premises  within  three  months  from  the 
date  thereof  or  pay  at  the  rate  of  $20  for  each  additional  three 
months  such  completion  Avas  delayed,  but  was  silent  as  to  the 
time  at  which  such  rentals  should  be  paid.  Said  lease  also 
contained  a  provision  whereby,  in  consideration  of  $1,  the 
lessor  "waived  his  right  to  demand  or  declare  a  cancellation 
or  a  forfeiture  thereof,  except  for  the  non-payment  of  rentals 
when  due,  and  also  contained  a  further  provision  Avhich 
authorized  the  lessee,  at  any  time,  on  the  payment  of  $1,  to 
surrender  the  lease  for  cancellation,  after  which  all  payments 
and  liabilities  thereafter  to  accrue  and  determine  shall  cease. 
At  the  time  the  lease  was  executed,  the  parties  agreed  that 
the  rentals  due  thereunder  should  be  paid  in  advance,  and 
in  accordance  with  this  agreement  rentals  were  for  a  time 
paid  in  advance  of  the  three  months  period  for  which  they 
were  due.  Held,  that,  applying  a  strict  rule  of  construction 
and  adopting  the  construction  which  the  parties  have  placed 
upon  this  agreement,  the  lease  will  be  construed  as  requiring 
the  rentals  due  thereunder  to  be  paid  in  advance.  Bearman 
v.  Dux  Oil  &  Gas  Co.,  64  Okla.  147,  166  Pac.  199. 


DIGEST  OP  OASES  195 

Where  the  rentals  due  under  the  terms  of  an  oil  and  gas 
lease  are  payable  in  advance  of  the  term  for  which  they  are 
due,  and  said  lease  contains  a  clause  authorizing  the  lessor 
to  declare  a  forfeiture  thereof  for  non-payment  of  rentals 
when  due,  and  where  said  rentals  are  not  paid  when  due  and 
a  forfeiture  is  declared  by  the  lessor  for  such  non-payment  all 
rights  of  the  lessee  are  determined,  and  he  cannot  have  specific 
performance  of  the  lease  directly  or  indirectly.  Id. 

Where  plaintiff's  lease  has  been  declared  forfeited  for  non- 
payment of  rentals  when  due,  and  another  lease  thereafter 
executed  to  another  person,  upon  the  same  premises,  the  plain- 
1iff  cannot  take  advantage  of  a  surrender  clause  in  the  second 
lease  authorizing  the  lessee  therein  to  surrender  same,  as  such 
provision  is  for  the  benefit  of  the  lessor,  and  he  alone  can 
lake  advantage  thereof  and  declare  the  lease  forfeited.  Id. 

An  oil  and  gas  lease  containing  a  stipulation  on  the  part  of 
the  lessee  to  commence  operation  on  the  premises  within  a 
year  from  a  date  certain  or  pay  for  delay  conferred  on  the 
lessee  an  option  to  drill  or  pay,  and  a  failure  to  do  either  ren- 
dered the  same  forfeitable  at  the  choice  of  the  lessor.  Melton 
v.  Cherokee  Oil  &  Gas  Co.,  —  Okla.  — ,  170  Pac.  689. 

After  oil  and  gas  or  either  of  them  are  found  upon  the  leased 
premises  in  paying  quantities,  the  lessees  thereby  acquired  a 
vested,  though  limited,  estate  in  the  leased  premises  for  the  pur- 
poses named  in  the  lease,  and  are  entitled  to  be  protected  in  the 
exercise  of  their  rights  according  to  the  terms  and  conditions 
of  their  contract,  unless  the  lease  has  been  forfeited  for  a  vio- 
lation of  some  of  its  terms  or  has  been  abandoned  by  them, 
lirennan  v.  Hunter,  —  Okla.  — ,  172  Pac.  49. 

Ordinarily  the  lessor  in  an  oil  and  gas  lease  is  the  only  per- 
son who  can  take  advantage  of  a  provision  therein  providing 
for  a  forfeiture  thereof  for  failure  of  the  lessees  to  comply 
with  its  terms,  unless  there  is  an  express  stipulation  that  the 
lease  shall  be  void  upon  failure  to  comply  with  its  terms.  Bren- 
nan  v.  Hunter,  —  Okla.  — ,  172  Pac.  49. 


196  OKLAHOMA  OIL  AND  GAS  LAWS 

The  lessor  is  the  only  person  who  can  avoid  an  oil  and  gas 

lease  on  the  ground  that  it  is  rendered  unilateral  by  reason  of 

a  surrender  clause  contained  therein,  and  claim  a  cancellation 

thereof  because  of  such  surrender  clause.    Brennan  v.  Hunter, 

-  Okla.  — ,  172  Pac.  49. 

The  lease  in  question  conferred  upon  the  lessees  the  right  to 
go  on  its  premises  and  search  for  oil  and  gas  within  the  initial 
period,  and  to  commence  operations  within  that  time,  and  con- 
tinue same  with  reasonable  diligence  until  it  was  determined 
whether  the  premises  were  barren,  or  oil  and  gas,  or  either  of 
them,  was  found  thereon  in  paying  quantities,  and,  while  the 
lessees  acquired  no  vested  estate  in  the  premises,  yet  they  had 
the  right  to  the  possession  of  the  land  to  the  extent  reasonably 
necessary  to  perform  the  obligations  imposed  upon  them  by 
the  terms  of  the  lease.  Id. 

An  oil  and  gas  lease  is  not  a  grant  of  the  oil  and  gas  that  is 
in  the  ground,  but  of  such  part  thereof  as  the  lessee  may  find, 
and  passes  no  estate  that  can  be  the  subject  of  an  ejectment 
or  other  real  action.  Brennan  v.  Hunter,  —  Okla.  — ,  172 
Pac.  49. 

Under  the  decision  of  the  United  States  Circuit  Court  of 
Appeals  for  the  Eighth  Circuit,  in  Brewster  v.  Lanyon  Zinc 
Co.,  140  Fed.  807,  72  C.  C.  A.  213,  decided  in  1905,  and  the 
opinions  of  the  Supreme  Court  of  Oklahoma  then  handed  down, 
an  Oklahoma  surrender  clause  oil  and  gas  mining  lease,  exe- 
cuted in  1912  for  a  cash  bonus  of  $120,  held  a  valid  and  en- 
forceable contract,  and,  though  the  lessee  had  the  right  to  de- 
cline to  accept  rentals  made  in  accordance  with  the  terms  of 
the  lease,  and  cancel  the  lease  within  the  five-year  term;  it 
not  appearing  that  there  was  any  threatened  drainage  of  the 
property,  or  any  undue  delay  in  development  after  becoming 
practicable  from  the  standpoint  of  marketing  facilities.  Shaf- 
fer v.  Marks,  241  Fed.  139. 

A  court  of  equity  has  jurisdiction  to  decree  the  forfeiture  of 
an  oil  and  gas  lease  on  account  of  the  breach  of  an  implied 


DIGEST  OP  CASES  197 

covenant  to  diligently  operate  and  develop  the  property,  when 
such  forfeiture  will  effectuate  justice,  and  the  lessor  is  not 
limited  to  an  action  for  damages  because  of  such  breach,  where 
the  measure  thereof  is  uncertain,  vague,  and  indefinite.  Black- 
well  Oil  &  Gas  Co.  v.  Whitesides,  —  Okla.  — ,  174  Pac.  573. 
/ 

The  same  relief  will  be  applied  in  equity  for  the  cancellation 
of  an  oil  and  gas  lease  on  land  in  a  gas  field,  where  the  initial 
well  drilled  on  the  plaintiff's  premises  produced  gas  only,  and 
the  payment  for  the  gas  was  the  stipulated  sum  of  $50  per 
annum  for  each  well.  Black  well  Oil  &  Gas  Co.  v.  Whitesides, 
-  Okla.  — ,  174  Pac.  573. 

Where  a  lessor  in  an  oil  and  gas  lease,  after  cause  for  for- 
feiture has  accrued,  fails  to  signify  to  the  lessee  his  intention 
to  avoid  the  lease  in  some  unequivocal  manner,  and  thereafter 
accepts  rentals  in  lieu  of  development,  such  conduct  on  the  part 
of  the  lessor  amounts  to  a  waiver  of  the  right  to  declare  a  for- 
feiture. Southwestern  Oil  Co.  v.  McDaniel,  --  Okla  — ,  175 
Pac.  920. 

Where  an  oil  and  gas  lease  contains  an  express  stipulation 
for  delay  in  development  by  the  payment  of  rentals,  held,  that 
an  implied  covenant  for  development  will  not  be  permitted  to 
change  the  agreement  of  the  parties.  Southwestern  Oil  Co.  v. 
McDaniel,  --  Okla.  — ,  175  Pac.  920;  Same  v.  Hendricks,  - 
Okla.  — ,  175  Pac.  922. 

Where  an  oil  and  gas  mining  lease  dated  May  14,  1912,  pro- 
vided that  a  test  well  should  be  commenced  within  five  miles  of 
the  leased  premises  before  September  1,  1912,  and  further  pro- 
vided that  a  well  should  be  commenced  on  the  leased  premises 
within  two  years  of  said  date,  or  certain  agreed  rentals  were 
to  be  paid,  held,  that  the  time  in  which  the  well  on  the  leased 
premises  should  be  commenced  or  rentals  paid  should  be  com- 
puted from  September  1st,  and  not  from  the  date  of  the  lease. 
Southwestern  Oil  Co.  v.  McDaniel,  —  Okla.  — ,  175  Pac.  920; 
Same  v.  Hendricks,  —  Okla.  — ,  175  Pac.  922. 


198  OKLAHOMA  OIL  AND  GAS  LAWS 

In  an  oil  and  gas  lease  for  a  term  of  10  years,  and  as  long 
thereafter  as  oil  or  gas  is  produced,  providing  royalties  on  the 
oil  and  gas  to  be  paid  the  lessor,  and  imposing  the  alternative 
duty  on  the  lessee  of  completing  a  well  in  90  days,  or  paying 
a  sum  specified  in  advance  each  additional  three  months  such 
completion  is  delayed,  there  is  no  implied  covenant  for  diligent 
operation,  or  operation  at  all,  during  the  term  of  10  years, 
merely  because  such  operations  may  be  conducted  successfully 
and  profitably  to  the  parties.  The  lessor  is  deemed  to  have 
assented  to  the  postponement  of  operations  through  the  several 
periods,  and  bound  to  accept  the  periodical  payments  therefor. 
Eastern  Oil  Co.  v.  Beatty,  —  Okla.  — ,  177  Pac.  104. 

Under  such  lease  the  lessor  is  not  entitled  to  a  decree  of  f  or- 
i'eiture  or  cancellation,  or  other  relief,  for  drainage  of  the 
leased  premises  suffered  by  failure  to  drill  offset  wells  during 
the  portion  of  the  term  of  10  years,  for  which  payments  for 
delay  in  completing  a  well  are  made  and  accepted  with  knowl- 
edge of  such  drainage.  Eastern  Oil  Co.  v.  Beatty,  —  Okla.  — , 
177  Pac.  104. 

Assuming  that  under  such  lease  an  obligation  to  drill  offset 
wells  during  the  10-year  period  for  the  protection  of  the  prem- 
ises against  drainage  from  wells  operated  on  adjacent  lands 
can  be  implied,  and  that  where  the  lessor  demands  that  sucli 
wells  be  drilled,  and  declines  to  accept  further  payments  for 
delay  in  completing  the  well,  a  cancellation  or  forfeiture  of  the 
lease  may  be  decreed  for  faiure  of  the  lessee  to  do  so  in  a  rea- 
sonable time  after  such  demand,  such  forfeiture  or  cancella- 
tion will  not  be  decreed  in  circumstances  where  drilling  such 
offset  would  not  be  reasonably  expected  of  operators  of  ordi- 
nary prudence,  having  regard  for  the  interests  of  both  lessor 
and  lessee  and  where  the  lessee  makes  timely  tender  of  all  pay- 
ments due  for  delay;  and  especially  so  where  it  reasonably 
appears  that  such  offset  well  would  not  be  profitable  to  lessee, 
and  where  it  does  not  reasonably  appear  that  the  value  of  the 
interests  of  the  lessor  in  the  oil  that  probably  could  be  saved 
from  drainage  by  such  offset  well  would  substantially  exceed 


DIGEST  OF  CASES  199 

the  amount  stipulated  to  be  paid  for  delay  in  completing  a 
well.    Eastern  Oil  Co.  v.  Beatty,  —  Okla.  — ,  177  Pac.  104. 

The  phrase  "oil  or  gas  is  found  in  paying  quantities,"  as 
used  in  the  covenant  of  an  oil  and  gas  lease,  that  "it  is  agreed 
that  one  well  on  this  lease  is  to  be  drilled  to  the  top  of  the 
Mississippi  lime,  unless  oil  or  gas  is  found  in  paying  quantities 
before  that  lime  is  reached,  unavoidable  accidents  excepted," 
taken  in  connection  with  other  provisions  of  the  contract,  is  in- 
terpreted to  mean  finding  oil  or  gas  in  such  quantities  as  would 
justify  the  expectation  of  a  reasonable  profit  above  the  entire 
cost,  including  the  cost  of  drilling  and  equipping  the  wells. 
Ardizonne  v.  Archer,  —  Okla.  — ,  178  Pac.  263. 

The  measure  of  damages  for  the  breach  of  an  express  cove- 
nant in  an  oil  and  gas  lease,  to  drill  one  well  to  the  top  of  the 
Mississippi  lime,  is  held,  under  the  facts  and  circumstances  of 
this  case,  to  be  the  reasonable  cost  of  drilling  same.  Ardizonne 
v.  Archer,  —  Okla.  — ,  178  Pac.  263. 

Where  a  lessee,  upon  discovery  of  gas  in  paying  quantities 
within  five  years  from  date  of  oil  and  gas  lease,  was  vested  by 
provisions  of  the  lease  with  a  limited  estate  for  further  opera- 
tions, such  right,  once  vested  by  discovery  of  gas  in  an  upper 
sand,  will  not  be  lost  if  the  lessee  continues  to  drill  deeper  in 
search  of  oil  or  gas  in  a  lower  sand,  although  he  does  not  find 
oil  or  gas  in  the  lower  sand  within  the  limitations  prescribed 
by  the  lease.  But,  if  oil  or  gas  be  not  found  in  the  lower  sand, 
production  .from  the  upper  sand  could  not  long  be  deferred 
without  incurring  the  penalty  of  abandonment  or  forfeiture  if 
forfeiture  be  prescribed.  Roach  v.  Junction  Oil  &  Gas  Co.,  - 
Okla.  — ,  179  Pac.  934. 

A  lessor,  invoking  the  jurisdiction  of  a  court  of  equity  to 
cancel  and  rescind  an  oil  and  gas  lease  for  breach  of  one  of 
the  covenants,  must  act  with  reasonable  dispatch  after  the  dis- 
covery of  his  rights  to  forfeiture  on  account  of  such  breach, 
end  if  he  clajms  delay  rental  and  advance  royalty  due  June 
19,  1910,  in  the  sum  of  $52,  but  he  permits  the  lessee  to  take 


200  OKLAHOMA  OIL  AND  GAS  LAWS 

charge  of  the  premises  in  September,  1910,  and  drill  a  gas  well 
upon  a  portion  of  the  premises  covered  by  said  lease,  and  per- 
mits the  lessee  to  pay  the  royalty  due  under  said  lease  to  the 
owner  of  the  portion  of  the  land  where  the  gas  well  is  found, 
for  a  period  of  three  years,  and  permits  the  premises  to  be  sold, 
and  the  record  title  shows  that  said  lease  is  in  full  force  and 
effect,  and  thereafter  the  lessee  takes  possession  of  said  portion 
of  the  premises  belonging  to  the  lessor,  although  over  his  pro- 
test, but  without  any  proceedings,  and  drills  three  producing 
oil  wells  thereon  at  a  cost  of  $19,000,  and  tenders  to  the  lessor 
the  royalty  due  under  said  lease,  said  plaintiff  would  be  guilty 
of  laches,  and  a  court  of  equity  would  not  enforce  a  forfeiture 
for  the  payment  of  $52  rental  due  June  19,  1910,  especially 
where  there  is  a  controversy  over  the  question  of  said  rental 
being  due.  Pierce  Oil  Corporation  v.  Schacht,  75  Okla.  101, 
181  Pac.  731. 

An  oil  and  gas  mining  lease  gave  the  lessee,  his  successors 
or  assigns,  one  year  from  date  thereof  to  complete  a  well  or 
pay  at  the  rate  of  $160  in  advance  for  each  additional  12  months 
such  completion  is  delayed,  providing  that  the  completion  of 
such  well  shall  operate  as  a  full  liquidation  of  all  rent  during 
the  remainder  of  the  term  of  the  lease,  which  was  for  five 
years ;  and  where  the  assignee  of  the  lessee  to  a  portion  of  the 
leased  premises  completed  a  well  upon  such  portion  within  one 
year,  and  such  well  continued  to  produce  oil  and  gas  in  paying 
quantities,  and  assignees  continued  to  operate  said  well  and  pay 
to  the  landowners  the  royalties  reserved  to  them  for  the  full 
term,  and  where  the  lessee  neither  drilled  on  the  unassigned 
portion  of  the  lease  or  paid  delay  money  during  the  term,  and 
some  time  after  the  term  expired  the  landowners  brought  suit 
to  quiet  the  title  to  the  unassigned  portion  of  the  premises, 
and  asked  that  the  lease  as  to  such  portion  be  forfeited  for 
failure  to  drill  and  operate  and  develop  the  same,  and  where, 
upon  the  trial  of  the  cause,  the  court  announced  as  his  find- 
ings "that  the  plaintiffs  are  the  owners  of  the  land  and  went 
in  possession  of  the  premises  at  the  time  of  taking  their  deed, 
and  have  retained  possession  since  that  date,"  and  entered  a 


DIGEST  OP  CASES  201 

judgment  in  favor  of  the  plaintiffs  quieting  their  title  to  the 
premises  and  canceling  the  lease  of  the  defendant,  held,  that 
from  an  examination  of  the  record  it  clearly  appeared  that 
the  plaintiffs  alleged  no  facts  or  offered  proof  of  such  facts  as 
would  be  sufficient  to  authorize  the  court  to  cancel  the  lease 
for  a  breach  of  the  implied  covenants  to  diligently  operate  and 
develop  the  premises,  the  demurrer  of  the  defendant  to  the 
evidence  of  the  plaintiffs  should  have  been  sustained,  and  that 
the  judgment  of  the  trial  court  should  be  reversed,  and  the 
cause  remanded.  Gypsy  Oil  Co.  v.  Cover,  78  Okla.  158,  189 
Pac.  540. 

Record  examined  and  held  that  judgment  canceling  oil  and 
gas  lease  is  sufficiently  supported  by  the  evidence.  Wooten  v. 
Lackey,  79  Okla.  141,  191  Pac.  1037. 

By  virtue  of  the  terms  of  the  usual  and  ordinary  oil  and 
gas  mining  lease,  the  lessee  is  entitled  to  the  possession  of  such 
portions  of  the  surface  of  the  land  covered  by  the  lease  as  may 
be  reasonably  necessary  for  the  development  and  exploration 
of  the  leased  premises  under  the  terms  of  the  lease.  Sanders 
v.  Davis,  79  Okla.  253,  192  Pac.  694. 

Where  the  lessee  under  an  oil  and  gas  lease  agreed  to  com- 
plete a  well  within  one  year,  or  pay  at  the  rate  of  $40  for  each 
additional  three  months'  completion  should  be  delayed  from 
the  time  fixed,  the  lease  cannot  be  forfeited  because  the  lessee 
made  no  effort  to  start  drilling  a  well  until  the  year  had  nearly 
expired.  Washburn  v.  Gillespie,  261  Fed.  41. 

A  suit  by  a  lessee  under  an  oil  and  gas  lease  to  enjoin  the 
lessor  from  interfering  with  drilling,  etc.,  may  be  maintained 
despite  the  claim  that  an  adequate  remedy  at  law  exists;  the 
suggested  remedy  of  unlawful  detainer,  which  is  designed  to 
change  possession  of  real  estate,  being  inadequate.  Wright  v. 
Gellespie,  261  Fed.  46. 

In  an  action  to  quiet  title  for  the  reason  the  lease  terminated 
by  its  own  terms,  and  the  lease  provides  it  shall  remain  in  full 
force  for  one  year,  and  as  long  thereafter  as  oil  or  gas  or 


202  OKLAHOMA  OIL  AND  GAS  LAWS 

cither  of  them  is  produced  therefrom,  and  more  than  one  year 
thereafter  the  evidence  is  uncontradicted  that  the  lessee 
plugged  the  only  well  on  said  premises  that  had  produced  oil 
or  gas,  and  there  was  no  other  well  upon  said  premises  from 
which  oil  or  gas  might  be  produced,  held,  the  lease  terminated 
by  its  own  terms,  and  it  was  error  to  refuse  to  quiet  plaintiff's 
title.  Anthis  v.  Sullivan  Oil  &  Gas  Co.  (Okla.),  203  Pac.  187. 

Under  oil  and  gas  lease  for  a  cash  bonus,  one-eighth  of  oil 
produced  and  certain  sum  for  each  gas  well,  requiring  lessee 
to  complete  a  well  within  12  months  or  pay  certain  amount 
quarterly  until  completion  and  under  which,  on  payment  of 
$1,  he  might  surrender  lease  for  cancellation,  the  lessor  had  no 
option  to  refuse  timely  tenders  of  payments  and  terminate 
lease,  though  no  well  had  been  commenced.  Magnolia  Petro- 
leum Co.  v.  Saylor,  —  Okla.  — ,  180  Pac.  861. 

Where,  in  order  to  enable  a  purchaser  to  acquire  a  merchant- 
able title  to  real  property,  and  to  effect  an  adjustment  with 
the  holder  of  his  right  and  interest  in  an  enforceable  contract 
with  the  owners  for  an  oil  and  gas  lease  thereon,  and  for  the 
purchase  of  an  interest  in  such  real  property,  the  purchaser 
enters  into  a  written  contract  with  such  holder,  in  considera- 
tion of  a  release  of  the  outstanding  contract  and  of  a  quitclaim 
deed  to  the  premises  and  other  covenants  and  agreements  then 
mutually  entered  into,  whereby  the  holder  of  the  original  con- 
tract reserves  the  oil  and  gas  appurtenant  to  the  premises  for 
a  term  of  15  years,  with  the  privilege  of  entry  and  accompany- 
ing development  rights,  in  the  absence  of  special  circumstances, 
no  implied  covenant  exists  requiring  the  lands  to  be  explored 
and  developed  with  reasonable  diligence,  as  is  commonly  re- 
quired in  case  of  an  ordinary  oil  and  gas  lease.  Kroeger  v. 
Martin,  75  Okla,  9,  180  Pac.  955. 

Without  an  express  covenant  in  an  oil  and  gas  lease  to  de- 
velop within  a  certain  period,  the  law  will  imply  a  covenant 
to  develop  within  a  reasonable  time  in  view  of  the  surrounding 
circumstances,  and  forfeiture  may  be  declared  for  failure  to 


DIGEST  OF  CASES  203 

so  develop.    New  State  Oil  &  Gas  Co.  v.  Dunn,  75  Okla.  141, 
182  Pac.  514. 

Where  an  oil  and  gas  lease  for  10  years,  and  as  much  longer 
as  oil  and  gas  may  be  found  in  paying  quantities,  contains  an 
express  covenant  to  complete  a  well  within  2  years,  and  with- 
out provision  to  pay  for  delay,  failure  of  lessee  to  comply  with 
such  express  covenant  amounts  to  abandonment,  and  renders 
the  lease  forfeitable  at  the  option  of  the  lessor  or  his  grantee. 
Id. 

In  an  oil  and  gas  mining  lease  granting  to  the  leessee  all  oil, 
gas,  and  other  minerals  found  in  and  under  the  premises  leased, 
together  with  the  right  to  enter  at  all  times  for  the  purpose  of 
drilling  and  operating,  and  to  erect  all  buildings  and  struc- 
tures, and  the  exclusive  right  to  lay  all  pipes  and  sluices  neces- 
sary for  the  production  and  transportation  of  oil,  gas,  and 
other  minerals  taken  from  the  premises,  the  lessor  to  receive 
one-eighth  part  of  all  oil  or  other  minerals  produced  and  saved 
from  said  premises,  to  be  delivered  in  pipe  line  by  the  lessee, 
and,  if  gas  only  was  found  in  quantities  large  enough  to  trans- 
port, then  lessor  to  receive  $100  per  year  for  the  product  of 
each  and  every  well  so  transported,  and  free  gas  for  dwelling, 
heating,  and  lighting  purposes,  held  that,  nothing  appearing 
to  the  contrary,  it  is  to  be  presumed  that  the  parties  had  in 
contemplation  the  lessee  would  make  a  reasonable  effort  to 
produce  oil,  and  if  the  lessee  in  good  faith,  honestly  attempt- 
ing to  discover  oil,  but  failing  to  find  oil,  should  find  gas  in 
paying  quantities  during  the  life  of  the  lease,  and  upon  pay- 
ment to  the  lessor  of  the  amoimt  stipulated  for  gas  well,  then 
the  lease  would  be  continued  as  therein  provided  for.  Hen- 
nessy  v.  Junction  Oil  and  Gas  Co.,  75  Okla.  220,  182  Pac.  666. 

Where  an  oil  and  gas  lease  expressly  provides  that  rights  of 
parties  shall  terminate  if  no  well  be  drilled  within  a  fixed 
period,  unless  the  lessee  on  or  before  that  date  shall  pay  or 
lender  to  the  lessor  a  fixed  sum,  the  right  to  defer  drilling  is 
an  option,  and  time  is  of  the  essence  of  the  contract.  Curtis 
v.  Harris,  76  Okla.  226, 184  Pac.  574. 


204  OKLAHOMA  OIL  AND  GAS  LAWS 

A  court  of  equity  will  refuse  to  quiet  title  under  an  oil  and 
gas  lease  where  a  well  was  not  completed  or  payment  ten- 
dered within  a  period  fixed  under  an  express  provision  that  the 
lease  should  terminate  as  to  both  parties,  unless  a  well  was 
completed  or  payment  tendered.  To  refuse  plaintiff  relief  is 
not  to  declare  a  forfeiture,  the  lease  having  terminated  by  its 
express  terms.  Id. 

An  oil  and  gas  lease  executed  January  4,  1916,  for  the  term 
of  five  years,  which  contains  the  provision,  "  If  no  well  be  com- 
pleted on  said  land  on  or  before  the  4th  day  of  January,  1917, 
this  lease  shall  terminate  as  to  both  parties,  unless  the  lessee 
on  or  before  that  date  shall  pay  or  tender  to  the  lessor  one 
hundred  sixty  dollars  which  shall  operate  as  a  rental  and  cover 
the  privilege  of  deferring  the  completion  of  a  well  in  twelve 
months,"  gives  to  the  lessee  the  option  either  to  pay  the  rental 
or  complete  a  well  prior  to  January  4,  1917,  and  that  the  com- 
mencement of  a  well  prior  to  January  4,  1917,  is  not  a  condi- 
tion precedent ;  but  the  payment  or  tender  of  the  rentals  prior 
to  January  4,  1917,  will  extend  the  lease  for  one  year.  Garber 
v.  Hauser,  76  Okla.  292,  185  Pac.  436. 

Evidence  in  this  case  examined,  and  the  weight  thereof  held 
to  support  the  judgment  of  the  trial  court.  Prowant  v.  Sealy, 
77  Okla.  244,  187  Pac.  235. 

Under  an  oil  and  gas  lease  for  three  years  and  as  much 
longer  thereafter  as  oil  or  gas  is  found  therein  or  said  prem- 
ises developed  or  operated,  and  providing  that,  if  a  well  was 
not  commenced  within  one  year  from  date,  the  lease  should  be- 
come void,  unless  lessee  paid  a  rental  of  $2  per  acre  for  each 
additional  year  of  delay  until  a  well  was  commenced,  and  that 
drilling  of  well  thereon  should  liquidate  all  rentals  due  or  pay- 
able during  remainder  of  the  term,  drilling  operations  com- 
menced within  three  years,  and  which  were  being  prosecuted 
in  good  faitli  at  end  of  term,  extended  term  during  continuance 
of  such  operations,  or  in  case  of  discovery  so  long  as  oil  and 
gas  was  run.  Id. 


DIGEST  OP  CASES  205 

Petition  for  foreiture  of  lease  held  sufficient  to  sustain  judg- 
ment for  plaintiff.  Tidal  Oil  Co.  v.  Koelfs,  77  Okla.  183,  187 
Pac.  486. 

If  an  oil  and  gas  lease  does  not  expressly  provide  for  the 
operation  of  the  lease  after  the  discovery  of  either  oil  or  gas  or 
both,  then  there  is  an  implied  contract  to  exercise  diligence 
under  the  facts  and  circumstances  of  the  case  to  operate  the 
same  and  thus  making  the  lease  remunerative  to  the  parties  to 
it.  Strange  v.  Hicks,  78  Okla.  1,  188  Pac.  347. 

Neither  party  to  the  contract  is  the  arbiter  as  to  whether 
or  not  due  diligence  has  been  exercised  to  operate  an  oil  and 
gas  lease.  If  an  oil  and  gas  lease  is  not  operated  with  due  dili- 
gence under  the  facts  and  circumstances  of  the  case,  then  a 
court  upon  proper  showing  may  declare  the  lease  forfeited.  Id. 

Forfeiture  of  an  oil  and  gas  lease  after  development  and  dis- 
covery of  oil  for  failure  to  operate  is  a  harsh  and  severe 
remedy,  and  should  only  be  declared  where  the  same  is  more 
consonant  with  the  principles  of  right  and  justice  than  to  with- 
hold such  equitable  relief.  Id. 

We  have  examined  the  record  in  this  case,  and  find  that  the 
judgment  of  the  trial  court  holding  that  the  lease  had  not 
terminated,  that  the  lessees  had  not  abandoned  it,  and  that 
they  had  not  forfeited  the  same  for  failure  to  operate  the  lease, 
is  not  against  the  clear  weight  of  the  evidence.  Id. 

In  the  instant  case  the  parties  hereto  on  January  22,  1912, 
entered  into  an  oil  and  gas  lease,  the  lessees  agreeing  to  com- 
mence operations  within  six  months  from  date.  Within  the 
time  fixed  for  operation  the  lessees  hauled  lumber  and  erected 
a  derrick,  and  in  December  following  placed  tools  upon  the 
grounds  to  develop  a  well,  and  in  January  following  com- 
menced actual  drilling,  and  in  February  following  finished  a 
well  at  a  depth  of  1,825  feet.  The  lessor  brings  this  suit  to 
cancel  the  lease  for  the  reason  that  operation  was  not  begun  in 
good  faith,  and  was  not  carried  out  with  reasonable  diligence. 
The  judgment  of  the  trial  court  was  in  favor  of  the  lessees. 


206  OKLAHOMA  OIL  AND  GAS  LAWS 

Held,  that  such  finding  is  not  against  the  clear  weight  of  the 
evidence,  and  for  that  reason  will  not  be  disturbed.  Gonzales 
v.  Cowerd,  78  Okla.  84,  188  Pac.  1053. 

Although  a  court  of  equity  will  decree  a  forfeiture  of  an  oil 
and  gas  lease  on  account  of  a  breach  of  an  implied  covenant 
to  diligently  operate  and  develop  the  property  when  such  for- 
feiture will  effectuate  justice,  the  granting  of  such  relief  de- 
pends upon  the  facts  and  circumstances  surrounding  the  par- 
ticular case.  Pelham  Petroleum  Co.  v.  North,  78  Okla.  39,  188 
Pac.  1069. 

A  court  of  equity  has  the  power  to  conform  its  decrees  to 
the  varying  circumstances  of  each  particular  case,  and,  if  the 
evidence  shows  that  a  part  of  the  leased  premises  under  an  oil 
and  gas  lease  have  been  properly  developed  with  reasonable 
diligence  by  the  lessee,  and  other  parts  have  not,  the  court  may 
cancel  the  lease  as  to  the  undeveloped  portion  and  permit  the 
lessee  to  continue  to  operate  the  developed  part  of  it.  Id. 

Where  the  object  of  the  operations  contemplated  by  an  oil 
and  gas  lease  is  to  obtain  a  benefit  or  profit  for  both  lessor 
and  lessee,  neither  is,  in  the  absence  of  a  stipulation  to  that 
effect,  the  arbiter  of  the  extent  to  which  or  the  diligence  with 
which  the  operations  shall  proceed;  but  both  are  bound  by  the 
standard  of  what,  in  the  circumstances,  would  be  reasonably 
expected  of  operators  of  ordinary  prudence,  having  regard  to 
the  interests  of  both.  Id. 

A  stipulation  in  an  oil  and  gas  lease  whereby  the  lessee  obli- 
gates itself  "to  protect  the  side  lines  in  case  oil  is  found  in 
paying  quantities"  imposes  upon  the  lessee  the  same  obliga- 
tion to  protect  the  lessor's  land  from  actual  or  threatened 
drainage  that  the  courts  universally  hold  to  be  upon  it  in  the 
absence  of  an  express  stipulation  to  that  effect.  Id. 

The  provision  means  that  the  lessee  is  required  to  drill  an 
offset  well  in  case  oil  is  found  on  adjacent  lands  near  the 
boundary  line  of  lessor's  land  in  sufficient  quantities  to  pay  a 


DIGEST  OP  CASES  207 

reasonable  profit  on  the  whole  sum  required  to  be  expended, 
including  the  cost  of  drilling,  equipping,  and  operating  the 
well.  Id. 

Where  an  oil  and  gas  lease  expressly  provides  that  rights  of 
parties  shall  terminate  if  no  well  be  drilled  within  a  fixed 
period,  unless  the  lessee  on  or  before  that  date  shall  pay  or 
tender  to  the  lessor  a  fixed  sum,  time  is  of  the  essence  of  the 
contract.  Garfield  Oil  Co.  v.  Champlin,  78  Okla.  91,  189  Pac. 
515. 

A  court  of  equity  may  cancel  a  lease  as  to  the  undeveloped 
part  thereof  and  permit  the  lessee  to  continue  to  operate  the 
developed  portion.  Carder  v.  Blackwell  Oil  &  Gas  Co.  (Okla.), 
201  Pac.  252. 

The  phrase,  "oil  or  gas  is  found  in  paying  quantities,"  means 
in  sufficient  quantities  to  pay  a  reasonable  profit  on  the  neces- 
sary sum  required  to  be  expended  in  drilling,  equipping  and 
operating  a  well.  Keechi  Oil  &  Gas  Co.  v.  Smith,  82  Okla. 
117, 198  Pac.  588. 

A  failure  on  the  part  of  the  lessee  in  an  "unless  lease"  to 
commence  the  drilling  of  a  well  or  to  pay  the  rental  as  stipu- 
lated, automatically  terminated  the  lease  contract.  McKinlay 
v.  Feagins,  82  Okla.  193,  198  Pac.  997. 

The  phrase,  "it  is  agreed  that  this  lease  shall  remain  in  full 
force  for  the  term  of  one  year  from  this  date,  and  as  long 
thereafter  as  oil  or  gas  or  either  of  them  is  produced  there- 
from," is  not  ambiguous  or  susceptible  of  more  than  one  con- 
struction. Anthis  v.  Sullivan  Oil  &  Gas  Co.  (Okla.),  203  Pac. 
187. 

(5)  Rent  or  Royalties. 
See  Sec.  20,  Indian  lands. 

Where  the  owners  of  a  life  estate  and  the  owners  of  the  re- 
mainder join  in  an  oil  and  gas  mining  lease,  and  the  lessee 
develops  the  lease  and  produces  oil,  the  life  tenants  are  entitled 


208  OKLAHOMA  OIL  AND  GAS  LAWS 

either  to  have  the  royalties  invested  and  to  receive  the  income 
therefrom,  or  to  receive  such  a  proportion  of  the  royalty  as 
will  amount  to  the  present  value  of  an  annuity  for  the  life 
expectancy  of  the  life  tenant  equal  to  the  interest  on  the  royal- 
ties at  6  per  cent.  Barnes  v.  Keys,  36  Okla.  6,  127  Pac.  261, 
Ann.  Gas.  1915A,  515  and  note;  45  L.  R.  A.  (N.  S.)  178. 

An  oil  lease  provided  that  the  lessee  should  commence  opera- 
tions in  drilling  for  oil  by  January  1,  1910,  or  thereafter  pay 
to  the  lessor  $1  per  acre  per  annum  until  a  well  is  drilled,  or 
the  lease  thereafter  was  null  and  void.  Held,  that,  upon  a  fail- 
ure to  begin  operations  by  drilling  for  oil,  the  lessor  was  en- 
titled to  the  stipulated  rental  until  a  well  is  drilled  or  until 
the  lease  is  terminated,  or  canceled,  under  the  surrender  clause 
in  the  contract,  Colin  v.  Clark,  48  Okla.  500,  150  Pac.  467. 

A  provision,  forfeiting  a  lease  on  failure  of  the  lessee  to 
fulfill  the  terms  of  the  contract,  is  for  the  benefit  of  the  lessor 
only,  and  he  alone  can  take  advantage  of  the  same,  unless  there 
is  an  expressed  stipulation  in  the  contract  that  the  lease  shall 
become  null  and  void,  unless  the  lessee  shall  either  drill  within 
a  certain  time  or  pay  the  rental,  or  words  of  similar  import. 
Cohn  v.  Clark,  48  Okla.  500,  150  Pac.  467. 

Where  the  sum  agreed  to  be  paid  for  the  option  is  not  paid 
at  the  time  agreed  upon,  nothing  else  appearing,  the  lessor  has 
the  right  to  cancel  the  lease.  .  Mitchell  v.  Probst,  52  Okla.  382, 
152  Pac.  597. 

Where  an  oil  and  gas  lease  contract  provides  that  the  lessee 
shall  complete  a  well  within  six  months  from  the  date  thereof, 
or  pay  the  lessor  rental  at  the  rate  of  $20  per  month  for  each 
additional  month,  such  completion  is  delayed  from  the  time 
sole  consideration  for  the  execution  of  the  lease  on  the  part 
such  provision  is  for  the  benefit  of  the  lessor  only,  and  that 
for  non-performance  on  the  part  of  the  lessee  he  may  either 
cancel  and  terminate  the  lease,  or  may,  if  he  chooses,  collect 
the  rents  stipulated  in  the  lease,  until  such  leased  premises  are 
reconveyed,  or  until  the  term  of  the  lease  expires.  McKee  v. 
Grimm,  57  Okla,  680,  157  Pac.  308. 


DIGEST  OF  CASES  209 

Where  aii  oil  and  gas  lease  was  made,  executed,  and  deliv- 
ered for  the  consideration  of  $1  in  hand  paid  the  lessor,  and 
the  covenants  and  agreements  thereinafter  contained  on  the 
part  of  the  lessee,  and  leased  and  let  to  him  a  certain  tract  of 
land  for  a  term  of  ten  years  and  as  long  thereafter  as  oil  and 
gas  or  either  was  produced  therefrom  the  lessee,  he  to  yield 
to  the  lessor  certain  royalties  from  the  oil  and  gas  produced, 
and  where  the  lessee  agreed  to  complete  a  well  on  the  premises 
Avithhi  four  months  from  the  date  thereof  or  pay  at  the  rate  of 
$80  in  advance  for  each  three  months  such  completion  was 
delayed,  held,  that  the  $1  supported  the  four  months'  period  in 
which  the  lessee  had  to  complete  a  well  and  supported  no  other 
population  in  the  lease ;  that  the  prospective  royalties  were  the 
sole  consideration  for  the  execution  of  the  lease  on  the  part 
of  the  lessor ;  that  the  agreements  on  the  part  of  the  lessee  to 
complete  a  well  on  the  demised  premises  within  four  months 
or  pay  for  delay  conferred  an  option  on  the  lessee  to  drill  or 
pay;  and  that  a  failure  to  do  either  forfeited  the  lease  at  the 
option  of  the  lessor,  who  thereafter  was  entitled  to  have  the 
same  judicially  declared  forfeited  and  canceled  as  a  cloud  upon 
his  title.  Brown  v.  Wilson,  58  Okla.  392,  160  Pac.  94. 

Where  said  lease  as  to  80  acres  of  the  demised  premises  was 
assigned  to  the  S.  S.  Co.,  and  where  011  July  17,  1914,  $20  delay 
money  fell  due  and  payable  thereon  from  the  lessee  to  the 
lessor,  assuming  that  the  lessor  and  all  parties  in  interest  under 
the  lease  agreed  to  the  substitution  of  said  company  as  lessee 
of  said  80  acres  so  assigned,  evidence  examined,  and  held,  that 
said  company  defaulted  in  said  payment,  and  that  time  was  the 
essence  of  the  contract,  that  the  court  erred  in  refusing  to  so 
hold  and  that  said  lease  was  forfeited  as  to  the  holding  of  said 
company  under  the  lease,  and  to  cancel  the  lease  accordingly. 
Brown  v.  Wilson,  58  Okla.  392,  160  Pac.  94. 

Where  said  lease  as  to  240  acres  of  the  demised  premises  was 
assigned  to  W.  and  C.,  and  where  on  April  17,  1914,  $60  delay 
money  fell  due  and  payable  thereon  from  them  to  the  lessor, 
evidence  examined,  and  held,  that  they  defaulted  in  said  pay- 


210  OKLAHOMA  OIL  AND  GAS  LAWS 

ment,  that  time  was  the  essence  of  the  contract,  that  the  court 
erred  in  refusing  to  so  hold,  and  that  said  lease  was  forfeit 
as  to  their  holdings  thereunder  and  to  cancel  the  same  accord- 
ingly. Brown  v.  Wilson,  58  Okla.  392,  160  Pac.  94. 

W.,  the  plaintiff,  alleged  in  his  petition  that  the  defendant, 
G.  O.  Co.,  had  been  producing  from  each  of  several  oil  wells 
upon  the  lands  of  plaintiff,  gas,  the  same  being  commonly 
spoken  of  as  casing  head  gas,  and  had,  in  its  own  near-by  plant, 
reduced  or  condensed  the  said  gas  into  the  form  of  gasoline, 
in  which  form  it  had  been  marketing  the  same,  and  for  which 
it  had  received  a  very  large  sum  of  money,  and  had  not  ac- 
counted to  plaintiff  for  any  part  thereof.  The  lease,  under 
which  the  defendant  was  operating,  which  was  attached  to  and 
made  a  part  of  the  petition,  contained  the  following  provisions 
with  reference  to  the  payment  of  royalties : 

"In  consideration  of  said  grant  and  demise,  the  parties  of 
the  second  part  agree  to  deliver  to  the  party  of  the  first  part 
one-fourth  of  the  oil  realized  from  the  premises,  in  tanks,  at 
the  well  without  cost.  If  gas  is  found  in  any  well  or  wells  on 
said  premises  the  party  of  the  first  part  is  to  have,  upon  de- 
mand, sufficient  gas  for  domestic  purposes  free  of  charge,  the 
remainder  with  all  gas  from  oil  wells  to  go  to  the  second  part 
(parties). 

"If  the  parties  of  the  second  part  shall  market  any  gas  from 
any  well  producing  gas,  then  the  party  of  the  first  part  shall 
receive  therefor  at  the  rate  of  one-fourth  of  all  the  gas  so  mar- 
keted or  sold." 

Held,  that  the  petition  stated  a  cause  of  action,  and  that  the 
trial  court  erroneously  sustained  a  demurrer  thereto.  With- 
ington  v.  Gypsy  Oil  Co.,  —  Okla.  — ,  172  Pae.  634. 

A  lessee  in  either  an  "unless"  or  an  "or"  surrender  clause 
lease,  who  intentionally  fails  to  make  a  delay  or  rental  pay- 
ment at  the  time  and  in  the  manner  specified  in  the  lease,  can- 
not escape  forfeiture  of  the  lease  by  tendering  payment  out  of 
time.  But  where  it  is  his  intention  to  make  the  stipulated  pay- 


DIGEST  OF  CASES  211 

ment  in  strict  accordance  with  the  terms  of  the  lease,  but  his 
attempt  to  do  so  is  abortive  because  of  some  accident  or  mis- 
take, not  the  result  of  his  wilful  neglect  or  gross  negligence,  a 
court  of  equity  will  grant  him  relief  as  against  the  forfeiture 
asserted  by  the  lessor  because  of  such  failure,  if  the  lessor  has 
not  suffered  by  the  delay  and  it  would  be  inequitable  to  en- 
force the  forfeiture.  Shaffer  v.  Marks,  241  Fed.  139. 

Where  the  husband  and  wife  execute  an  oil  and  gas  lease  as 
"parties  of  the  first  part,  as  the  interest  of  the  lessors  may 
appear,"  under  the  terms  of  which  the  rentals  are  to  be  paid 
''to  the  parties  of  the  first  part,"  and  which  lease  contains  no 
provision  defining  the  interests  of  the  lessors,  they  are  joint 
obligees,  and  payment  of  the  rentals  to  the  wife  discharges 
lhat  obligation,  notwithstanding  the  record  title  to  the  land  is 
in  the  husband.  Jens-Marie  Oil  Co.  v.  Rixse,  —  Okla.  — ,  178  / 
Pac.  658. 

Where  a  lessor  in  an  oil  and  gas  lease,  after  cause  for  for- 
feiture has  accrued  for  non-payment  of  rentals,  fails  to  signify 
his  intention  to  avoid  the  lease  in  some  unequivocal  manner, 
and  thereafter  accepts  rentals  in  lieu  of  development,  such  con- 
duct on  the  part  of  the  lessor  amounts  to  a  waiver  on  his  part 
to  declare  a  forfeiture.  Maud  Oil  &  Gas.  Co.  v.  Bodkin,  75 
Okla.  6,  180  Pac.  959. 

Where  an  oil  and  gas  lease  provides  that  the  lessee  shall 
complete  a  well  on  said  premises  within  one  year  from  the 
date  thereof,  or  pay  at  the  rate  of  $20  for  each  additional  year 
after  such  completion  is  delayed,  and  no  time  is  fixed  in  the 
lease  as  to  when  said  rental  shall  become  due  and  payable, 
applying  a  strict  rule  of  construction  thereto,  as  against  the 
lessee  and  in  favor  of  the  lessor,  such  rental  is  payable  in 
advance  at  the  beginning  of  the  year  for  which  it  is  to  be  paid. 
Maud  Oil  &  Gas  Co.  v.  Bodkin,  75  Okla.  6,  180  Pac.  959. 

In  an  oil  and  gas  mining  lease,  providing,  if  gas  only  is 
found  in  quantities  large  enough  to  transport,  then  lessor  to 
receive  $100  for  each  and  every  well  from  which  gas  is  so 


212  OKLAHOMA  OIL  AND  GAS  LAWS 

transported,  the  lessee,  acting  in  good  faith  and  upon  his  honest 
judgment,  not  an  arbitrary  judgment,  or  one  springing  from 
an  ulterior  purpose  to  secure  an  unfair  advantage  of  the  les- 
sor, is  to  determine  whether  or  not  the  well  brought  in  pro- 
duces gas  in  quantities  large  enough  to  transport.  Hennessy  v. 
Junction  Oil  &  Gas  Co.,  75  Okla.  220,  182  Pac.  666. 

A  well  is  not  an  "oil  well,"  within  the  meaning  of  a  lease 
reserving  to  the  lessor  one-tenth  of  "all  the  oil  and  other  min- 
erals, ' '  merely  because  gasoline  is  produced  as  a  by-product  of 
the  gas.  Wolf  v.  Blackwell  Oil  &  Gas  Co.,  77  Okla.  81,  186 
Pac.  484. 

An  oil  and  gas  lease  requiring  quarterly  payments  of  rental 
until  development  work  was  begun,  but  not  providing  for  for- 
feiture, not  making  time  of  its  essence,  held  not  forfeited  by  a 
slight  delay  in  making  a  payment  through  mistake.  Aggers  v. 
Shaffer,  256  Fed.  648. 

A  lessee  in  an  "  unless ' '  oil  and  gas  lease,  which  paid  a  sub- 
stantial consideration  for  an  option  right  of  exploration,  with 
right  of  renewal  each  year  thereafter  for  five  years,  by  paying 
a  yearly  rental  in  advance,  and  which  paid  the  rental  for  the 
first  renewal,  and  also  for  the  second  in  due  time,  but  through 
inadvertence  and  mistake  made  the  second  payment  to  the 
original  lessor,  as  shown  by  its  system  of  records  upon  which 
is  relied  for  such  purpose,  although  notified  of  the  transfer  of 
the  land,  when  sued  for  cancellation  of  the  lease,  held  entitled 
to  equitable  relief  under  Rev.  Laws  Okla.  1910,  2844,  providing 
for  relief  against  forfeiture  or  a  loss  in  the  nature  of  a  for- 
feiture occurring  without  gross  negligence  or  fraud.  Brunson 
v.  Carter  Oil  Co.,  259  Fed.  656. 

An  oil  and  gas  lease  for  a  term  of  years,  but  providing  that 
if  no  well  is  commenced  within  one  year  it  shall  terminate 
unless  lessee  shall  before  the  end  of  the  year  pay  a  rental  in 
advance,  which  shall  extend  the  time  for  commencing  a  well 
for  another  year,  with  the  same  provision  as  to  succeeding 
years,  under  the  law  of  Oklahoma,  as  settled  by  decision,  is 


DIGEST  OP  CASES  213 

simply  a  grant  of  an  option  to  explore  for  oil  and  gas,  carrying 
no  vested  interest  in  the  real  estate;  but,  while  it  gives  no 
right  in  rem,  it  creates,  a  right  in  person-am  for  such  explora- 
tion, which,  when  based  on  a  valuable  consideration,  may,  in  a 
proper  case,  be  protected  in  equity  from  forfeiture.  Id. 

Where  payment  of  first  quarter's  rent  due  under  oil  and  gas 
lease  was  tendered  before  it  was  due,  and  there  was  no  require- 
ment in  the  lease  for  payment  in  advance,  the  lease  cannot  be 
forfeited  because  tender  for  a  subsequent  quarter  was  not 
made  until  after  the  quarter  began.  Washburn  v.  Gillespie, 
261  Fed.  41. 

Where  a  lessee  under  an  oil  and  gas  lease  tendered  payments 
by  check,  but  the  payments  were  refused,  as  were  offers  of 
cash,  the  lessor  claiming  he  was  not  bound  by  the  lease  for 
reasons  unrelated  to  the  rental  payments,  further  tenders  were 
unnecessary  for  the  lessee  to  protect  his  rights.  Wright  v. 
Gillespie,  261  Fed.  46. 

Where  an  oil  and  gas  lease  expressly  provides  that  rights 
of  parties  shall  terminate  if  no  well  be  drilled  within  a  fixed 
period,  unless  the  lessee  on  or  before  that  date  shall  pay  or 
tender  to  the  lessor  a  fixed  sum,  time  is  of  the  essence  of  the 
contract.  Eastern  Oil  Co.  v.  Smith,  80  Okla.  207,  195  Pac.  773. 

The  lessee  is  bound  by  the  terms  of  the  lease,  and  where  the 
terms  of  the  lease  provide  that  if  a  well  was  not  completed 
within  one  year  from  the  date  thereof  or  certain  rentals  paid 
as  therein  provided,  the  lease  should  terminate  as  to  both  par- 
ties. Held,  the  failure  to  complete  a  well  or  pay  the  rental 
within  the  time  stipulated  automatically  terminated  the  lease. 
Id. 

The  lessee  in  an  oil  and  gas  lease  who  mailed  to  the  bank 
where  rental  was  to  be  deposited  in  a  registered  letter  con- 
taining a  check  for  the  rental,  which  letter  was  delayed  in  the 
mails,  may  have  relief  in  equity  against  the  forfeiture.  Har- 
vey v.  Benmo  Oil  Co.,  272  Fed.  475. 


214  OKLAHOMA  OIL  AND  GAS  LAWS 

An  "unless"  lease  is  subject  to  termination  at  the  will  of 
the  lessee,  which  privilege  may  be  exercised  by  a  mere  failure 
to  pay  the  stipulated  rental  at  the  time  due,  upon  the  happen- 
ing of  which  the  lease  automatically  terminates,  and  the  lessor 
cannot  maintain  an  action  against  the  lessee  for  rentals.  Gar- 
field  Oil  Co.  v.  Champlin,  78  Okla.  91,  189  Pac.  514. 

IH.  OPERATION  OF  LEASES  AND  WELLS. 

13.  Mode  of  Working  in  General. 

For  testing  or  working  generally,  see  Sec.  12,  subdivision  4. 

Where  the  object  of  the  operations  contemplated  by  an  oil 
and  gas  lease  is  to  obtain  a  benefit  or  profit  for  both  the  lessor 
and  lessee,  neither  is,  in  the  absence  of  a  stipulation  to  that 
effect,  the  arbiter  of  the  extent  to  which  or  the  diligence  with 
which  the  operations  shall  proceed ;  but  both  are  bound  by  the 
standard  of  what,  under  the  circumstances,  would  be  reason- 
ably expected  of  operators  of  ordinary  prudence,  having  re- 
gard to  the  interests  of  both.  Paraffine  Oil  Co.  v.  Cruce,  63 
Okla.  95,  162  Pac.  716,  14  A.  L.  R.  952. 

14.  Contracts  for  Testing  or  Working. 

Where  the  object  of  the  operations  contemplated  by  an  oil 
and  gas  lease  is  to  obtain  a  benefit  or  profit  for  both  lessor  and 
lessee,  neither  is,  in  the  absence  of  a  stipulation  to  that  effect, 
the  arbiter  of  the  extent  to  which,  or  the  diligence  with  which, 
the  operation  shall  proceed;  but  both  are  bound  by  the  stand- 
ard of  what,  in  the  circumstances,  would  be  reasonably  ex- 
pected of  an  operator  of  ordinary  prudence,  having  regard  to 
the  interest  of  both.  Indiana  Oil,  Gas  &  Dev.  Co.  v.  McCrory, 
42  Okla.  136,  140  Pac.  610. 

A.,  owning  an  oil  lease,  assigns  one-tenth  thereof  to  B.  upon 
the  consideration  that  B.  will  bear  all  the  expense  of  drilling, 
equipping,  and  operating  the  oil  wells  to  be  drilled  thereon. 
B.  assigns  to  C.  three-fourths  of  his  interest  in  the  oil  lease 
upon  the  consideration  that  C.  will  bear  the  entire  expense  of 


DIGEST  OF  CASES  215 

development  of  the  oil  lease  therein,  obligating  himself  to 
carry  out  the  contract  of  B.  to  A.  Then  C.  assigns  a  one-eighth 
interest  in  the  lease  to  D.,  and  in  the  assignment  it  is  stated : 
''This  assignment  is  and  shall  be  binding  upon  the  parties 
hereto  and  is  subject  to  the  terms  and  conditions  of  said  lease 
from  A.  to  B."  Held,  that  D.  under  the  terms  of  the  contract 
became  liable  to  pay  only  one-eighth  of  the  expense  of  drilling, 
equipping  and  operating  the  oil  wells.  Cox  v.  Butts,  48  Okla. 
147,  149  Pac.  1090. 

A  written  contract  for  drilling  oil  wells  provided  that  the 
driller  should  drill  to  a  depth  of  850  feet,  unless  sooner  stopped 
by  the  owner,  and  that,  should  it  be  necessary  and  possible  to 
drill  said  wells  deeper  than  850  feet,  the  driller  so  undertook 
the  owner  to  pay  therefor  at  a  fixed  price  per  foot,  to  such  a 
depth  as  was  deemed  satisfactory  to  it,  or  to  water.  A  further 
provision  of  said  contract,  under  the  heading  "Payment,"  pro- 
vided that  all  money  should  be  due  and  payable  on  said  drill- 
ing contract  when  each  well  was  turned  over  to  and  accepted 
by  the  owner,  less  such  sums  as  might  have  been  advanced 
under  another  clause  of  the  contract.  One  well  was  drilled  to 
a  depth  of  863  feet,  when  a  controversy  over  the  payment  arose. 
Neither  oil  nor  gas  had  been  struck,  and  the  owner  insisted 
upon  the  driller  going  down  a  greater  depth,  which  was  neces- 
sary if  the  prospect  was  to  be  continued.  It  does  not  appear 
that  it  was  impossible  to  do  further  drilling.  Payment  being 
refused,  the  driller  removed  its  rig,  and  brought  suit  to  recover 
for  the  drilling  done  and  other  items  claimed  to  be  due.  The 
court  charged  the  jury  that  if  they  found  the  plaintiff  had 
drilled  a  well  to  the  depth  or  850  feet,  said  well,  under  the 
terms  of  the  contract,  was  completed,  and  plaintiff  was  entitled 
to  recover  both  for  drilling  and  reaming.  Held,  an  erroneous 
construction  of  the  contract.  Lament  Gas  &  Oil  Co.  v.  Doop  & 
Frater,  39  Okla.  427,  135  Pac.  392. 

The  lessee  of  an  oil  and  gas  mining  lease  cannot  select  a  place 
rnd  there  drill  an  oil  or  gas  well,  if  the  particular  place  selected 
will  endanger  the  property  and  lives  of  other  people  who  are 


216  OKLAHOMA  OIL  AND  GAS  LAWS 

lawfully  using  the  surface,  when  the  lessee  can  drill  his  well 
at  another  place  equally  convenient  to  him,  and  equally  advan- 
tageous to  him,  which  will  not  endanger  the  property  and  lives 
of  those  lawfully  upon  the  surface.  Gulf  Pipe  Line  Co.  v.  Paw- 
nee-Tulsa  Petroleum  Co.,  34  Okla.  775,  127  Pac.  252,  41  L.  E.  A. 
(N.  S.)  1108.  Note:  68  L.  R.  A.  695. 

Where  plaintiff  enters  into  a  contract  with  defendant  to  drill 
an  oil  well  to  a  stipulated  depth  at  a  stipulated  price  per  foot, 
and  plaintiff  commences  drilling  and  drills  to  a  depth  of  ten 
feet  when  a  dispute  arises  over  the  lease  and  the  defendant 
delays  drilling  and  requests  plaintiff  to  remain  on  the  lease 
until  an  adjustment  of  the  dispute  can  be  made,  then  finally 
stops  the  drilling  altogether  and  prevents  the  completion  of  the 
well,  an  instruction  which  in  effect  defines  the  measure  of  dam- 
ages which  plaintiff  is  entitled  to  recover  as  expenses  neces- 
sarily incurred  in  moving  the  rig  and  drilling  machinery  to 
location,  necessary  expenses  in  rigging  up  and  drilling  to  the 
point  when  interrupted,  and  reasonable  compensation  for  the 
plaintiff's  loss  of  time  in  remaining  on  the  premises  at  the 
special  instance  and  request  of  the  defendant,  under  the  plead- 
ing and  evidence,  properly  states  the  measure  of  damages 
which  the  plaintiff  is  entitled  to  recover.  Letcher  v.  Maloney, 
-  Okla.  — ,  172  Pac.  972. 

The  word  ''proposed"  in  a  binding  contract  for  the  pay- 
ment of  $3,000,  "if  a  well  proposed  to  be  drilled  upon  certain 
land  proves  a  commercial  paying  oil  or  gas  well/'  must,  in 
construing  such  contract,  be  defined  as  fixed  intention  on  the 
part  of  the  promisor  fully  known  to  the  promisee  at  the  time 
the  contract  was  entered  into  that  a  well  was  contracted  to  be 
drilled  upon  the  land  referred  to  in  the  contract.  Gem  Oil  Co. 
v.  Callendar,  —  Okla.  — ,  173  Pac.  820. 

A  clause  in  a  contract  for  drilling  oil  well,  "party  of  the 
first  part  to  have  first  choice  on  other  drilling  at  price  paid 
in  H.  Field  by  reliable  operators,"  is  so  indefinite  as  to  be 
ineffective.  Emery  Bros.  v.  Mutual  Benefit  Oil  Co.  —  Okla.  — » 
175  Pac.  210. 


DIGEST  OF  CASES  217 

15.  Rights  and  Liabilities  Incident  to  Working. 

Where  oil  wells,  drilled  by  defendants  as  trespassers  on  the 
land  of  complainant,  pending  a  suit  to  recover  possession,  were 
operated  by  a  receiver  who  used  defendants'  tools  and  ma- 
chinery, the  defendants  were  entitled  to  a  fair  compensation 
for  the  use  of  such  tools  and  machinery.  Midland  Oil  Co.  v  . 
Turner,  179  Fed.  74,  102  C.  C.  A.  368. 

In  an  action  to  recover  damages  to  a  leasehold  estate  held 
under  an  oil  and  gas  lease  for  injuries  alleged  to  have  been 
committed  on  the  llth  day  of  November,  1915,  where  in  the 
trial  court  over  objections  permitted  the  introduction  of  testi- 
mony as  to  the  value  of  the  lease  several  months  prior  to  the 
date  of  the  alleged  injury,  held,  that  the  same  constitutes  re- 
versible error.  Producers  Supply  Co.  v.  Maple  Leaf  Oil  Co., 
82  Okla.  120,  198  Pac.  577. 

The  measure  of  damages  for  breach  of  contract  to  drill  a 
hole,  already  partially  drilled,  to  an  additional  depth,  is  the 
expenditure  made  under  such  contract  plus  the  amount  neces- 
sary to  complete  the  hole,  according  to  the  terms  of  the  con- 
tract, above  the  amount  agreed  to  be  paid  the  contractor  for 
the  further  drilling,  less  the  amount  due  the  drilling  contractor 
for  the  work  already  done  under  the  contract,  provided  that 
the  completion  of  the  original  hole  was  stopped,  delayed,  or 
prevented  by  the  wilful  refusal  to  proceed,  lack  of  ordinary 
care,  or  wanton  or  malicious  act  of  the  drilling  contractor,  and, 
if  such  lack  of  care  makes  it  necessary  to  drill  a  new  hole  in 
order  to  reach  the  required  depth,  then  the  cost  of  such  hole 
is  an  element  of  the  amount  necessary  to  complete  a  hole  in 
accordance  with  the  terms  of  the  contract  for  such  further 
drilling.  North  Healdton  Oil  &  Gas  Co.  v.  Skelley,  59  Okla. 
128,  158  Pac.  1180. 

A  petition  in  an  action  by  an  oil  and  gas  lessor  for  injuries 
to  the  surface  rights  held  to  state  a  cause  of  action.  Pulaski 
Oil  Co.  v.  Conner,  62  Okla.  211,  162  Pac.  464. 


218  OKLAHOMA  OIL  AND  GAS  LAWS 

Where  several  persons  and  corporations  owning  and  operat- 
ing separate  oil  and  gas  leases  negligently  allow  crude  oil  to 
escape  from  their  respective  leases  into  a  near-by  creek,  where 
it  became  ignited  and  was  carried  by  the  wind  and  the  natural 
flow  of  the  stream  upon  the  barn  of  another  situated  upon 
such  stream  which,  together  with  its  contents,  thereby  totally 
destroyed,  they  are  jointly  and  severally  liable  for  the  wrong- 
doing, and  the  injured  party  may,  at  his  option,  institute  an 
action  and  recover  against  one  or  all  of  those  contributing  to 
his  injury.  Northup  v.  Eakes,  —  Okla.  — ,  178  Pac.  266. 

Drilling  a  well  in  search  of  oil  or  gas  is  not  mining  within 
the  meaning  of  Sec.  36,  Art.  9  of  the  Oklahoma  Constitution, 
pertaining  to  common  law  doctrine  of  fellow  servant.  Kreps 
v.  Brady,  37  Okla.  754,  133  Pac.  216,  47  L.  R.  A.  (N.  S.)  106. 

Money  furnished  to  be  used  in  drilling  an  oil  and  gas  well 
deposited  in  a  bank  under  the  terms  of  a  drilling  contract, 
was  a  loan  and  not  a  trust  fund  and  the  lender  was  not  entitled 
to  the  money  as  against  the  contractors.  Rush  Creek  Oil  & 
Gas  Co.  v.  King,  80  Okla.  226,  195  Pac.  784. 

Where  a  partnership  exists  between  two  persons  who  are 
undertaking  a  joint  venture  to  procure  an  oil  and  gas  lease 
and  develop  the  same  and  a  third  person  joins  in  the  venture 
with  them,  under  an  agreement  that  he  is  to  have  a  specified 
interest  in  the  lease  and  division  of  the  profits,  knowing  the 
relationship  which  exists  between  the  two.,  he  thereby  becomes 
a  partner  with  each  of  the  original  partners  in  the  joint  ven- 
ture. Wells  v.  Shriver,  81  Okla;  108,  197  Pac.  460. 

Under  an  agreement  by  four  parties  to  purchase  a  block  of 
oil  and  gas  leases,  each  party  to  own  an  undivided  one-fourth 
interest  in  said  leases,  said  leases  being  purchased  for  the  pur- 
pose of  sale  and  division  of  profits,  constitute  the  parties  to 
the  agreement  a  partnership.  Cogdall  v.  Cottrell,  82  Okla.  125, 
198  Pac.  581. 


DIGEST  OP  CASES  219 

IV.  INDIAN  LANDS. 

16.  Power  to  Lease  Indian  Lands. 

An  oil  lease  given  by  an  allotee  of  th°.  Creek  Indian  Nation 
was  held  valid  though  when  executed  the  lessor  was  confined 
in  the  penitentiary  and  had  never  seen  the  land,  and  was  not 
aware  nor  informed  of  the  fact  that  valuable  oil  wells  had 
been  drilled  within  two  miles  of  the  property;  it  appearing 
that  the  terms  of  the  lease  were  not  inequitable  nor  the  con- 
sideration inadequate  as  compared  with  other  leases  on  land 
in  the  vicinity  made  about  the  same  time,  and  in  view  of  the 
approval  of  the  contract  by  the  Secretary  of  the  Interior  upon 
the  report  of  agents  who  visited  and  examined  the  land.  Moore 
v.  Sawyer,  167  Fed.  826. 

The  provision  of  Sec.  9,  c.  199,  Act  May  27,  1908,  restricting 
alienation  of  a  deceased  Indian  allottee's  homestead  for  the  use 
and  support  of  the  issue  of  such  allottee  contemplated  its  use 
only  for  agricultural  or  grazing  purposes,  and  such  other  use 
as  would  not  conflict  with  the  provision  against  alienation  of 
the  land  and  does  not  authorize  the  leasing  for  oil  and  gas, 
for  which  authority  is  found  only  in  Sec.  2;  that  where  such 
homestead  is  leased  by  the  heirs  in  whom  the  title  is  vested, 
with  the  Secretary's  approval,  the  royalties  so  received  belong 
1o  the  heirs  interested.  Riley  v.  Kelsey,  218  Fed.  391. 

Section  3  of  said  Allotment  Act  of  June  28,  1906,  c.  3572,  34 
Stat.  at  L.  543,  further  expressly  reserves  to  the  Osage  Tribe, 
for  a  period  of  25  years  from  April  8,  1906,  the  oil,  gas,  coal, 
or  other  minerals  covered  by  the  lands  for  the  selection  and 
division  of  which  prorision  was  made  and  authorizes  the  tribal 
council  to  lease  allotted  lands  for  oil,  gas  and  other  minerals, 
with  the  approval  of  the  Secretary  of  the  Interior,  but  that 
nothing  therein  contained  should  affect  any  valid  existing  lease 
or  contract.  Leahy  v.  Indian  Territory  Illuminating  Oil  Co., 
39  Okla.  312,  135  Pac.  416. 

By  the  latter  proviso  to  the  foregoing  section  of  the  allot- 
ment act,  it  was  intended  not  to  give  to  the  individual  allottee 


220  OKLAHOMA  OIL  AND  GAS  LAWS 

the  royalties  arising  from  oil  and  gas  wells  on  his  or  her  allot- 
ment, as  mentioned  in  Act  March  3,  1905,  c.  1479,  33  Stat.  at  L. 
1048,  1061,  and  in  the  Foster  lease,  but  to  expressly  recognize 
the  rights  of  the  holders  of  any  valid  lease  or  contract,  and 
which  rights  were  to  remain  in  full  force  and  unimpaired  by 
the  passage  of  the  Act  or  the  allotment  of  the  tribal  lands. 
Leahy  v.  Indian  Territory  Illuminating  Oil  Co.,  39  Okla.  312, 
135  Pac.  416. 

By  Act.  Cong.  June  7,  1897,  c.  3,  30  Stat.  72,  the  restrictions 
as  to  alienation  of  lands  allotted  members  of  the  Quapaw  Indian 
Tribe  under  Act  March  2,  1895,  c.  188,  28  Stat.  907,  were  so 
modified  as  to  grant  to  allottees  of  such  tribe  the  power  to 
lease  their  allotted  lands  for  a  term  not  exceeding  three  years 
for  farming  or  grazing  purposes,  and  for  a  term  not  exceeding- 
ten  years  for  mining  or  business  purposes,  without  the  ap- 
proval of  the  Secretary  of  the  Interior,  except  in  cases  where 
the  allottee  by  reason  of  age  or  other  disability  was  incompe- 
tent to  properly  manage  his  allotment.  Tidwell  v.  Dobson,  37 
Okla.  180, 131  Pac.  693. 

Where  an  unmarried  Indian  of  the  Five  Civilized  Tribes 
executes  an  oil  and  gas  mining  lease  which  contains  no  provi- 
sions for  renewal,  he  cannot  after  marriage  and  the  establish- 
ment of  a  homestead,  execute  a  valid  renewal  or  extension  of 
such  lease  unless  his  wife  should  join  him  therein.  Chisholm 
v.  Creek  &  C.  Dev.  Co.,  273  Fed.  589. 

17.  Statutory  Provisions. 

The  supplemental  agreement  with  the  Creeks,  ratified  by 
them  on  June  30,  1902  (32  Stat.  500),  provides  in  Sec.  16  that 
"lands  allotted  to  citizens  shall  not  in  any  manner  whatever 
be  alienated  by  the  allottee  or  his  heirs"  before  the  expiration 
of  a  certain  time,  except  Avith  the  approval  of  the  Secretary  of 
the  Interior.  Sec.  17  provides  that  allottees  may  lease  or  rent 
their  allotments  under  certain  terms  and  conditions.  Held, 
that  the  restriction  against  alienation  applied  to  renting  and 
leasing,  and  that  the  provision  of  the  Act  of  April  21,  1904, 


DIGEST  OF  CASES  221 

c.  1402,  33  Stat.  204,  and  that  "all  restrictions  upon  the  aliena- 
tion of  lands  of  allottees  of  either  of  the  Five  Civilized  Tribes 
of  Indians  who  are  not  of  Indian  blood  except  minors  are,  ex- 
cept as  to  homesteads,  thereby  removed,"  removed  all  restric- 
tions as  to  leasing  by  allottees  within  its  scope.  Moore  v.  Saw- 
yer, 167  Fed.  826. 

By  the  seventh  paragraph  of  Section  2  of  Act  June  28,  1906, 
c.  3572,  34  Stat.  at  L.  539,  known  generally  as  the  Osage  Allot- 
ment Act,  it  is  expressly  provided  that  the  oil,  gas,  coal,  or 
other  minerals  on  allotted  lands  should  be  reserved  to  the  use 
of  the  tribe  for  a  period  of  25  years,  at  the  expiration  of  which 
time,  unless  otherwise  provided  by  Act  of  Congress,  the  same 
should  become  the  property  of  the  individual  owner.  Leahy  v. 
Indian  Territory  Illuminating  Oil  Co.',  39  Okla.  312,  135  Pac. 
416. 

Under  the  provisions  of  paragraph  7  of  Section  2  of  said  Act 
(Act  June  28,  1906,  c.  3572,  34  Stat.  540),  adult  members  of 
the  Osage  Tribe,  to  whom  certificates  of  competency  were  is- 
sued by  the  Secretary  of  the  Interior,  could  sell  and  convey, 
manage,  control,  and  dispose  of  their  surplus  allotted  lands, 
but  could  not  sell  the  oil,  gas,  coal,  or  other  mineral  covered 
by  said  lands.  Neilson  v.  Alberty,  36  Okla.  490,  129  Pac.  847. 

Under  the  Act  of  Congress  of  March  3,  1905,  c.  1479,  33  Stat. 
1061,  the  approval  of  the  Secretary  of  the  Interior  was  not 
necessary  to  the  validity  of  a  mortgage  of  an  oil  and  gas 
lease  in  the  Osage  Nation.  Davis  v.  Moffet,  43  Okla.  171,  144 
Pac.  607. 

Act  Congress,  March  3,  1905,  c.  1479,  33  Stat.  1060,  making 
appropriations  for  the  expenses  of  the  Indian  Department,  and 
for  fulfilling  treaty  stipulations  with  the  Indian  Tribes,  re- 
quired the  approval  of  all  guardian's  leases  to  allotted  lauds 
of  minor  members  of  the  Five  Civilized  Tribes;  such  approval 
to  be  by  the  United  States  Court  having  jurisdiction  of  the 
guardianship  proceedings,  and  without  which  no  guardian's 


222  OKLAHOMA  OIL  AND  GAS  LAWS 

lease  should   be  valid  or    enforceable.     Walker  v.  McKemie 
(Okla.),  145  Pac.  359. 

An  assignment  of  royalty  due  under  the  mining  lease  given 
by  a  Quapaw  Indian  on  his  allotment  is  valid  under  Act  March 
2,  1895,  c.  188,  28  Stat.  907,  as  modified  by  Act  June  7,  1897,  c. 
o,  30  Stat.  72.  Following  Wat-Tah-Noh-Zhe  v.  Moore,  129  Pac. 
877.  Tidwell  v.  Dobson,  37  Okla,  180,  131  Pac.  693. 

Act  March  1,  1907,  declaring  the  filing  in  the  office  of  the 
United  States  Indian  agent,  Union  Agency,  Muskogee,  Indian 
Territory,  of  a  lease  of  an  allotment  of  Indian  land,  to  be  con- 
structive notice,  especially  in  view  of  it  being  a  special  act,  is 
not  repealed,  annulled,  or  modified  by  admission  of  Oklahoma 
to  the  Union,  by  the  recordation  statutes  of  the  territory  or 
State  (Rev.  Laws  Okla.  1910,  Sections  1154,  1155),  by  the 
Enabling  Act,  the  Constitution,  or  the  Schedule  of  the  Consti- 
tution of  that  State.  Anchor  Oil  Co.  v.  Gray,  257  Fed.  277. 

18.  Supervision  by  Federal  Government. 

Filing  of  departmental  leases  as  constructive  notice,  see  Sec. 
11,  subdivision  5. 

The  filing  of  a  copy  of  an  oil  and  gas  lease  executed  by  a» 
Indian  at  the  Indian  agency,  as  required  by  the  rules  of  the 
Interior  Department,  is  merely  for  administrative  purposes, 
and  does  not  charge  a  subsequent  purchaser  of  the  land  with 
constructive  notice  of  such  lease.  Shulthis  v.  McDougal,  170 
F.  529,  95  C.  C.  A.  615. 

A  lease  executed  by  an  Indian  giving  the  lessee  the  right  for 
15  years  to  explore  for  and  extract  oil  and  gas  must,  under 
Mansf.  Deg.,  Section  671,  be  recorded  to  be  valid  against  a  sub- 
sequent purchaser  without  notice,  although  the  lease  had  not 
been  approved  by  the  Secretary  of  the  Interior  as  required  by 
law.  Shulthis  v.  McDougal,  170  F.  529,  95  C.  C.  A.  615. 

The  allotment  deed,  issued  to  plaintiff  by  express  provision, 
reserves  to  the  Osage  tribe  of  Indians,  for  a  period  of  25  years 


DIGEST  OF  CASKS  223 

from  and  after  April  8,  1906,  all  oil,  gas,  coal,  and  other  min- 
erals covered  by  the  lands  allotted  to  her.  Leahy  v.  Indian 
Territory  Illuminating  Oil  Co.,  39  Okla.  312,  135  Pac.  416. 

It  is  lawful  for  Congress,  acting  as  patriat  of  a  minor  Creek 
Indian,  and  whose  allotment  contains  restrictions  against  alien- 
ation, to  enact  a  law  conferring  upon  the  Secretary  of  the  In- 
terior authority  to  grant  a  right-of-way  in  the  nature  of  an 
easement  for  the  construction,  operation,  and  maintenance  of 
pipe  lines  for  the  conveyance  of  oil  and  gas  through  such  allot- 
ment, upon  such  terms  and  for  such  compensation  as  may  be 
fixed ;  due  consideration  at  all  times  being  had  for  the  interest 
of  the  minor  allottee.  Texas  Co.  v.  Henry,  34  Okla.  342,  12«3 
Pac.  224. 

Occupying  the  position  that  the  federal  government  does  in 
its  guardianship  over  the  Creek  Indians,  and  its  obligation  to 
protect  them  in  their  property  and  personal  rights,  it  cannot 
be  said  that  Act  March  11,  1904,  pursuant  to  which  an  allottee, 
through  her  legal  guardian,  received  $892.50  cash  for  a  20- 
year  easement  on  11.9  acres  of  land,  was  not  in  the  interest  of 
or  beneficial  to  such  allottee,  but,  instead,  was  wholly  in  the 
interest  of  companies  engaged  in  piping  oil  and  gas  through 
the  Indian  Territory,  though  such  Act  was  primarily  for  the 
benefit  of  such  companies.  Texas  Co.  v.  Henery,  34  Okla.  342, 
126  Pac.  224. 

Where  an  Indian  minor,  after  reaching  majority,  re-dated, 
re-executed  and  extended  a  mining  lease  on  his  allotment,  the 
Government  had  no  right  to  sue  to  set  it  aside.  United  States 
v.  Wright,  197  Fed.  297. 

Leases  of  allotments  of  Indian  minors  in  the  Five  Civilized 
Tribes  confirmed  and  approved  by  the  trial  court  in  that  jur- 
isdiction since  April  26,  1906,  are  not  subject  to  the  approval 
or  disapproval  of  the  Secretary  of  the  Interior ;  but  the  orders 
of  the  court  confirming  and  approving  them  are  final.  Cowles 
v.  Lee,  35  Okla.  159,  128  Pac.  688. 


224  OKLAHOMA  OIL  AND  GAS  LAWS 

An  allottee  of  the  Cherokee  Tribe  of  Indians  prior  to  the 
removal  of  his  restrictions  executed  a  mining  lease  upon  his 
allotment  subject  to  the  approval  of  the  Secretary  of  the  In- 
terior. AfteiKthe  lease  had  been  submitted  and  while  pending 
before  the  Secretary  of  the  Interior,  lessor's  restrictions  on 
alienation  of  his  lands  were  removed,  and  he  then  protested 
against  the  approval  of  the  lease,  which  was  denied  and  the 
lease  approved.  On  suit  brought  to  cancel  the  same  as  a  cloud 
upon  the  title  to  the  land  involved,  it  was  held  by  the  trial 
court  that  the  lease  was  invalid.  Held,  error.  Almeda  Oil  Co. 
v.  Kelley,  35  Okla.  525,  130  Pac.  931. 

Where  the  petition  discloses  that  the  Secretary  of  the  In- 
terior disapproved  a  lease  and  afterwards  approved  the  same 
on  condition  that  plaintiff,  pursuant  to  its  agreement,  assign 
to  defendant  a  portion  of  the  leased  property,  held  that,  as  the 
petition  fails  to  disclose  that  the  Secretary  acted  through  gross 
and  fraudulent  mistake  of  facts,  a  demurrer  thereto  was  prop- 
erly sustained.  Indiahoma  Oil  Co.  v.  Thompson  Oil  &  Gas  Co., 
38  Okla.  140,  132  Pac.  481. 

Under  Act  Cong.  March  3,  1905,  c.  1479,  33  Stat.  1061,  the 
approval  of  the  Secretary  of  Interior  was  not  necessary  to 
the  validity  of  a  mortgage  of  an  oil  and  gas  lease  in  the  Osage 
Nation.  Ashcraft  v.  Moffett  (Okla.),  144  Pac.  1041. 

Where  an  original  lease  of  Indian  mineral  lands  was  signed 
by  both  lessor  and  lessees,  but  renewals  and  extensions  were 
signed  by  the  lessor  only,  and  the  lessees  accepted  the  exten- 
sions and  caused  them  to  be  recorded,  the  Government  acting 
for  the  lessor  could  not  have  the  extensions  set  aside  under 
the  statute  of  frauds.  United  States  v.  Wright,  197  Fed.  297. 

A  contract  by  which  a  lessee  in  an  Indian  oil  and  gas  lease 
parted  with  the  management  and  control  of  operations  there- 
under to  another,  who  was  to  conduct  such  operations  at  his 
own  expense  and  risk  and  to  have  a  beneficial  interest  in  the 
production,  is  a  transfer  of  an  interest  in  the  lease,  within  the 
regulations  prescribed  by  the  Secretary  of  the  Interior  and 


DIGEST  OF  CASES  225 

embodied  in  such  lease,  providing  that  no  sub-lease,  assign- 
ment or  transfer  thereof,  or  of  any  interest  therein,  could  be 
made  without  the  written  consent  of  the  lessor  and  the  Secre- 
tary first  obtained,  and  without  such  consent  the  contract  is 
void.  Barnsdall  v.  Owen,  200  Fed.  519. 

(a)  The  Act  of  Congress  of  May  27,  1908  (35  Stat.  L.  312, 
c.  199),  does  not  confer  on  the  Secretary  of  the  Interior  the 
right  to  enter  into  a  lease  contract  affecting  the  restricted  lands 
of  a  minor  Indian,  (b)  That  right  rests  solely  in  the  guardian. 
(c)  The  only  actual  authority  of  the  Secretary  in  such  cases  is, 
either  to  approve  the  lease  contract  as  made  by  the  guardian, 
or  to  withhold  his  approval.  Crosbie  v.  Brewer,  —  Okla.  — , 
158  Pac.  388. 

C.  &  W.  entered  into  a  contract  with  the  guardian  of  a  minor 
for  an  oil  lease  upon  the  restricted  lands  of  said  minor.  Pend- 
ing the  action  of  the  Secretary  of  the  Interior  thereon,  the 
lessees  could  not  voluntarily  withdraw  therefrom  without  the 
consent  of  said  guardian,  unless  notified  by  the  said  Secretary, 
or  his  agent,  that  the  terms  of  his  contract  were  rejected. 
Crosbie  v.  Brewer,  —  Okla.  — ,  158  Pac.  388. 

The  approval  of  the  Secretary  of  the  Interior  to  leases  of 
restricted  lands  of  members  of  the  Five  Civilized  Tribes  for 
oil  and  gas  and  other  mining  purposes  may  be  given  at  any 
time  either  before  or  after  the  death  of  the  lessor,  so  far  as  the 
rights  of  heirs  and  those  claiming  under  them  with  notice  were 
concerned  and  the  approval  when  given  related  back  and  takes 
effect  as  of  the  execution  of  the  lease  by  the  parties  named 
therein.  Anchor  Oil  Co.  v.  Gray,  41  Sup.  Ct.  544. 

A  departmental  oil  and  gas  lease,  which  provides,  if  the 
lessee  fails  to  comply  with  any  of  the  terms  thereof,  that  the 
lessor  may  declare  the  lease  forfeited  upon  giving  10  days' 
notice.  The  notice  is  not  complied  with  by  the  lessor  notifying 
the  lessee  that  he  had  declared  the  lease  forfeited,  but  in  order 
to  comply  with  said  provision  in  said  lease  it  is  necessary  to 
notify  the  lessee  of  the  terms  of  the  lease  that  have  been 


226  OKLAHOMA  OIL  AND  GAS  LAWS 

violated,  and  provide,  if  the  same  is  not  complied  with  within 
ten  days,  then  the  lease  will  be  considered  forfeited.  Pierce 
Oil  Corporation  v.  Schacht,  75  Okla.  101,  181  Pac.  731.  Note : 
16  A.  L.  E.  588. 

Act  Congress  May  27,  1918,  c.  199,  35  Stat.  312,  authorizes 
the  guardians  of  Indian  minors  to  make  certain  lease  con- 
tracts, subject  to  the  approval  of  the  Secretary  of  the  Interior. 
Held  that,  where  a  guardian,  under  proper  probation  procedure, 
made  a  lease  contract  under  the  provisions  of  this  Act,  which 
was  duly  approved  by  the  Secretary  of  the  Interior,  the  lessee 
was  bound  by  such  contract.  Crosbie  v.  Brewer,  —  Okla.  — , 
173  Pac.  441. 

Section  2  of  the  Act  of  Congress  of  May  27,  1908,  c.  199,  35 
Stat.  312,  provides:  "That  all  lands  other  than  homesteads 
allotted  to  members  of  the  Five  Civilized  Tribes  from  which 
restrictions  have  not  been  removed  may  be  leased  by  the  allot- 
tee, if  an  adult,  or  by  guardian  or  curator  under  order  of  the 
proper  probate  court,  if  a  minor  or  incompetent,  for  a  period 
not  to  exceed  five  years,  without  the  privilege  of  renewal: 
Provided,  that  leases  of  restricted  lands  for  oil,  gas  or  other 
mining  purposes,  leases  of  restricted  homesteads  for  more  than 
one  year,  and  leases  of  restricted  land  for  periods  of  more  than 
five  years,  may  be  made,  with  the  approval  of  the  Secretary  of 
the  Interior,  under  rules  and  regulations  provided  by  the  Sec- 
retary of  the  Interior,  and  not  ' '  otherwise. ' '  Held,  that  under 
this  section,  where  a  full-blood  Choctaw  Indian  had  valid  ex- 
isting leases  on  his  surplus  and  homestead  allotments,  which 
did  not  expire  until  the  31st  day  of  December,  1911,  additional 
leases  made  and  dated  on  the  5th  day  of  September,  1911, 
leasing  his  surplus  lands  for  a  period  of  five  years,  commenc- 
ing on  the  1st  day  of  January,  1912,  and  his  homestead  allot- 
ment for  a  period  of  one  year,  commencing  on  the  same  day, 
without  the  approval  of  the  Secretary  of  the  Interior,  are  in 
contravention  of  this  act,  and  therefore  void.  Mullen  v.  Car- 
ter, —  Okla.  — ,  173  Pac.  512. 


DIGEST  OF  CASES  227 

Under  Act  of  April  26,  1906,  c.  1876,  §  20,  and  Act  of  May 
27, 1908,  c.  199,  §  2,  oil  and  gas  leases  of  lands  of  Creek  Indians 
were  held  without  validity  unless  approved  by  the  Secretary 
of  the  Interior.  Anieker  v.  Gunsberg,  246  U.  S.  110,  38  S.  Ct. 

1228. 

Under  Act  of  April  26,  1906,  c.  1876,  §  20,  and  Act  of  May 
27,  1908,  c.  199,  §  2,  approval  of  oil  and  gas  lease  of  lands  of 
Indian  is  in  the  discretion  of  the  Secretary  of  the  Interior,  and 
he  may  consider  the  advantages  and  disadvantages  of  the  lease 
and  grant  or  withhold  approval  as  his  judgment  may  dictate. 
Id. 

The  Secretary  of  the  Interior  is  not  deprived  of  authority  to 
exercise  discretion  respecting  approval  of  Indian  leases  by  giv- 
ing reasons  which  might  not  in  all  respects  meet  with  approval. 
Id. 

Supervisory  authority  of  Secretary  of  Interior  over  royalties 
under  oil  lease  of  full-blood  Indian  allottee 's  land,  made  under 
Act  May  27,  1908,  §  2,  continues  after  death  of  allottee  leaving 
a  full-blood  Indian  heir ;  it  naturally  falling  to  him,  under  Rev. 
St.  §§  441,  463  (Comp.  St.  §§  681,  716),  in  the  absence  of  some 
provision  to  the  contrary,  and  none  such  appearing  in  the  leas- 
ing provision,  or  in  the  proviso  to  9,  Act  May  27,  1908,  as  to 
sale  of  the  land  by  the  heir  with  approval  of  the  court.  Parker 
v.  Richard,  250  U.  S.  235,  39  S.  C.  Rep.  442. 

Within  provision  of  an  oil  lease,  given  on  land  of  a  full-blood 
Creek  allottee  with  approval  of  Secretary  of  the  Interior,  under 
authority  of  Act  May  27,  1908,  §  2,  that  supervision  of  the 
lease  by  the  Secretary  should  cease  in  the  event  of  restriction 
on  alienation  of  the  land  being  removed,  such  restriction,  con- 
tinuing up  to  allottee's  death,  was  not  thereby  removed,  but 
only  qualified,  his  heir  being  a  full-blood  Indian;  provision  of 
*•  9,  that  death  of  an  allottee  shall  remove  all  restriction  on 
alienation  of  his  land  being  controlled  by  the  proviso  that  no 
conveyance  of  any  interest  of  any  full-blood  Indian  heir  in  such 
land  shall  be  valid  unless  approved  by  the  court  having  juris- 


228  OKLAHOMA  On-  AND  GAS  LAWS 

diction  of  settlement  of  the  deceased  allottee's  estate.    Parker 
v.  Richard,  39  S.  C.  Rep.  442. 

An  oil  and  gas  mining  lease  executed  February  11,  1915,  by 
a  full-blood  heir  of  a  deceased  Creek  Indian  allottee,  is  a  "  con- 
veyance of  an  interest"  in  said  lands,  and  is  void  unless  ap- 
proved as  required  by  §  9,  Act  Cong.  May  27,  1908,  c.  199,  35 
Stat.  315.  Hoyt  v.  Fixico,  —  Okla.  — ,  175  Pac.  517. 

The  district  courts  of  this  State  have  jurisdiction  to  fore- 
close a  mortgage  on  the  interest  of  the  lessee  in  an  oil  and  gas 
lease  on  Indian  land  in  the  Osage  Nation  while  the  land  is  held 
in  trust  J>y  the  United  States,  such  action  in  no  wise  affecting 
the  title  of  the  Indian  owners,  and  not  contemplating  an  in- 
vasion of  the  province  of  the  Secretary  of  the  Interior  to  ap- 
prove or  disapprove  any  transfer  of  the  lease,  in  case  of  trans- 
fer pursuant  to  a  foreclosure  sale.  McKee  v.  Interstate  Oil  & 
Gas.  Co.,  77  Okla,  260,  188  Pac.  109. 

Lease  of  allottee  of  the  Five  Indian  Tribes  of  his  lands,  when 
approved  after  his  death  by  the  Secretary  of  the  Interior,  re- 
lates back  to  and  takes  effect  as  of  the  date  of  its  execution, 
except  as  against  any  persons  without  notice,  though  it  pro- 
vides its  term  shall  be  from  approval  by  the  Secretary.  Anchor 
Oil  Co.  v.  Gray,  257  Fed.  277. 

The  authority  of  the  Secretary  of  the  Interior,  under  Act 
April  26,  1906,  §  20,  to  approve  and  thereby  to  validate  a  lease 
by  a  full-blood  Creek  Indian  allottee  of  his  or  her  allotment 
continues  after  his  or  her  death.  Anchor  Oil  Co.  v.  Gray,  257 
Fed.  277. 

The  term  "restriction,"  as  used  in  the  proviso  of  Act  May 
27,  1908,  §  4,  prohibiting  allotted  lands  from  being  subject, 
or  held  liable,  to  any  form  of  personal  claim  or  demand  against 
the  allottees,  arising  or  existing  prior  to  the  removal  of  re- 
strictions, other  than  contracts  heretofore  expressly  permitted 
by  law,  comprehends  a  limitation  operating  on  minors,  so  that 
such  minors  may  not  convey  allotted  or  inherited  tribal  land 


DIGEST  OF  CASES  229 

without  the  intervention  of  the  proper  State  court  exercising 
probate  jurisdiction,  and  on  the  agencies  of  the  State,  so  that 
such  land  may  not  be  liable  to  personal  claims  or  demands  aris- 
ing prior  to  majority,  other  than  by  contracts  permitted  by 
Act  of  Congress,  as  well  as  restrictions  removed  by  §§  1  and  9, 
or  thereafter  removed  in  accordance  therewith.  Rogers  v. 
Rogers,  263  Fed.  160. 

The  second  proviso  in  Act  May  27,  1908,  §  2,  prescribing  a 
federal  limitation  or  restriction  as  to  ages  of  Indian  minors, 
§  6,  subjecting  the  property  of  minor's  allottees  to  the  juris- 
diction of  the  probate  court  of  Oklahoma,  and  the  proviso  of 
§  4,  prohibiting  allotted  lands  from  being  subjected  or  held 
liable  to  any  form  of  personal  claim  or  demand  against  the 
allottees  arising  or  existing  prior  to  removal  of  restrictions, 
other  than  contracts  heretofore  expressly  permitted  by  law, 
constitute  a  limitation  or  restriction,  but  not  to  the  extent  of 
making  inherited  allotted  lands  " restricted  lands,"  as  the  term 
is  used  in  the  first  proviso  of  §  2.  Id. 

Under  Act  May  27,  1908,  §  9,  on  the  death  of  an  Indian 
allottee  of  three-fourths  Indian  blood,  leaving  a  homestead  and 
children  born  since  March  4,  1906,  the  homestead  remains  in- 
alienable for  the  support  of  such  children  during  their  lives 
until  April  26,  1931,  and  \vhere  the  land  is  under  oil  lease  the 
royalties  accruing  therefrom  constitute  a  fund,  the  income 
from  which  is  to  be  devoted  to  that  purpose  until  the  termina- 
tion of  such  special  right,  when  the  principal,  like  the  land,  is 
to  be  divided  among  the  general  heirs;  their  guardian,  ap- 
pointed by  the  State  probate  court,  not  being  entitled  to  the 
custody  of  such  royalties  without  the  consent  of  the  Secretary 
of  the  Interior.  Id. 

The  guardian,  appointed  by  the  State  probate  court  for  minor 
heirs  of  a  deceased  allottee  of  surplus  lands,  both  decedent  and 
heirs  being  of  three-fourths  Indian  blood,  held  entitled  to  re- 
ceive the  royalties  accruing  to  such  heirs  from  oil  leases,  and 
to  hold  and  account  for  the  same,  subject  to  the  right  of  the 


230  OKLAHOMA  OIL  AND  GAS  LAWS 

Secretary  of  the  Interior,  through  regulations  prescribed  by 
him,  to  cause  execution  of  the  trust  as  the  law  directs.    Id. 

19.  Construction  and  Operation  of  Oil  and  Gas  Leases. 

See  Sec.  12,  subdivision  1. 

An  oil  and  gas  lease  executed  by  an  Indian  landlord  to  a 
corporation  tenant,  subject  to  the  approval  of  the  Secretary 
of  the  Interior,  was  approved,  conditioned  upon  the  lessee  and 
its  sureties  executing  certain  documents  containing  conditions 
and  terms  which  the  lessee  rejected.  Held,  that  such  condi- 
tional approval  was  a  new  proposal,  which,  when  not  accepted 
by  the  lessee,  resulted  in  a  failure  of  any  contract;  and  delay 
of  action  on  the  part  of  the  lessee  did  not  result  in  creating 
one.  Davis  v.  Selby  Oil  &  Gas.  Co.,  35  Okla.  254,  128  P.  1083. 

The  term  ' '  cultivated  inclosure ' '  in  the  clause  of  the  mining 
lease  made  by  the  Osage  Nation  on  March  16,  1896,  to  Foster, 
which  prohibits  boring  wells  on  the  Osage  Indian  reservation 
for  oil  and  gas  on  such  inclosures,  includes  those  made  after 
as  well  as  those  which  were  in  existence  at  the  date  of  the 
lease.  Barnsdall  Oil  Co.  v.  Leahy,  195  Fed.  731. 

An  oil  and  gas  lease  is  an  "alienation"  of  lands,  within  the 
meaning  of  the  "Original  Agreement"  (Act.  March  1,  1901,  c. 
675,  31  Stat.  849),  section  7,  and,  where  made  of  the  homestead 
of  a  deceased  citizen  by  blood  of  the  Creek  Nation,  by  her  heir 
before  the  expiration  of  five  years  from  the  ratification  of  that 
agreement,  is  void.  Barnes  v.  Stonebraker,  28  Okla.  75,  113 
Pac.  903. 

The  sale  of  an  option  to  purchase  the  land,  contained  in  an 
oil  and  gas  lease  of  the  homestead  of  a  deceased  citizen  by 
blood  of  the  Creek  Nation,  made  by  her  heir  before  the  expira- 
tion of  five  years  from  the  ratification  of  the  ' '  Original  Agree- 
ment" (Act  March  1,  1901,  c.  675,  31  Stat.  848)  is  void  under 
said  Act  and  section  16  of  an  Act  approved  June  30,  1902,  c. 
1323,  32  Stat.  503),  and  will  not  be  specifically  enforced. 
Barnes  v.  Stonebraker,  28  Okla.  75,  113  Pac.  903. 


DIGEST  OP  CASES  231 

An  oil  and  gas  mining  lease  is  an  "alienation  of  lands," 
within  the  meaning  of  an  Act  of  Congress  approved  April  21, 
1904  (Act  April  21,  1904,  c.  1402,  33  Stat.  204),  providing  that 
; '  all  restrictions  upon  the  alienation  of  lands  of  all  allottees  of 
either  of  the  Five  Civilized  Tribes  of  Indians  who  are  not  of 
Indian  blood,  except  as  to  minors  are,  except  as  to  homesteads, 
hereby  removed."  Sharp  v.  Lancaster,  23  Okla.  349,  100  Pac. 
578. 

A  lease  is  an  "alienation  of  lands"  within  the  intent  and 
meaning  of  Act  April  21,  1904,  c.  1402,  33  Stat.  204.  Eldred  v. 
Okrnulgee  Loan  &  Trust  Co.,  22  Okla.  742,  98  Pac.  929. 

A  departmental  oil  and  gas  lease  of  a  citizen  of  the  Cherokee 
Nation  contained  the  provision  that  the  lessee  should  drill  at 
least  one  well  within  12  months,  and  that,  on  failure  to  do  so 
on  notice  and  proof  of  default,  the  Secretary  of  the  Interior 
at  his  discretion  might  declare  the  same  null  and  void,  and 
the  further  provision  that  the  lessee  agreed  that  the  indenture 
should  in  all  respects  be  subject  to  the  rules  and  regulations 
theretofore  prescribed  by  the  Secretary  relative  to  oil  and  gas 
leases  in  the  Cherokee  Nation.  Prior  to  the  approval  of  the 
said  lease,  the  Secretary  of  the  Interior  prescribed  a  rule  pro- 
viding that  lessees,  on  making  certain  payments,  should  have 
the  privilege  of  delay  or  operation  for  a  period  not  to  exceed 
five  years.  Held,  that  the  same  regulation  was  a  valid  exer- 
cise of  authority  by  the  said  Secretary  of  the  Interior,  became 
a  part  of  the  lease,  and  was  binding  on  both  parties.  Dixon  v. 
Owen,  38  Okla.  85,  132  Pac.  351. 

In  the  year  1907,  upon  the  petition  of  the  guardian  of  a  minor 
full-blood  allottee,  the  United  States  Court  for  the  Northern 
District  of  the  Indian  Territory,  sitting  in  equity,  made  an 
order  directing  the  minor  to  join  in  executing  an  oil  and  gas 
mining  lease  upon  the  ward's  allotment  upon  condition  that 
the  lease  should  be  approved  by  the  Secretaiy  of  the  Interior. 
Held,  that  this  condition  requiring  the  approval  of  the  Sec- 
retary  of  the  Interior  was  a  condition  precedent  in  the  lease 
contract,  and  no  estate  vested  thereunder  until  this  condition 


232  OKLAHOMA  OIL  AND  GAS  LAWS 

was  performed,  although  the  condition  may  have  been  void. 
Wellsville  Oil  Co.  v.  Miller  (Okla.),  145  Pac.  344,  150  Pac.  186. 

The  approval  of  a  guardian's  lease  being  necessary  to  its 
validity  or  enforceability,  such  lease  was  not  fully  executed 
within  the  meaning  of  the  Act  of  June  28,  1898,  until  its  ap- 
proval by  the  court  as  provided  by  the  Act  of  March  3,  1905. 
Walker  v.  McKemie  (Okla.),  145  Pac.  359. 

Act  May  27,  1908,  c.  199,  35  Stat.  312,  authorizes  the  leasing 
of  allotments  of  minor  Indians  of  the  Five  Civilized  Tribes  by 
their  guardians  under  order  of  the  proper  probate  court  of  the 
State,  but  provides  that  the  jurisdiction  of  such  courts  shall  be 
subject  to  the  provisions  of  the  Act.  It  also  defines  minors  as 
including  "all  males  under  the  age  of  21  years."  Held,  that 
a  district  court  of  the  State,  acting  under  a  State  statute, 
cannot  confer  majority  on  an  Indian  allottee  under  the  age  of 
21  years  so  as  to  qualify  him  to  lease  or  otherwise  transfer 
his  allotment.  Truskett  v.  Closser,  198  Fed.  835. 

Act.  Cong.  March  2,  1895,  c.  188,  28  Stat.  907,  provided  that 
allotments  to  Quapaw  Indians  in  Oklahoma  should  be  inalien- 
able for  25  years  from  and  after  the  patent;  but  act  June  7, 
1897,  c.  3,  30  Stat.  72,  providing  that  such  allottees  might 
lease  their  lands  for  a  term  not  exceeding  3  years  for  farming 
or  grazing  purposes,  or  10  years  for  mining  and  business  pur- 
poses. Held,  that  where  an  allottee  had  leased  her  allotment 
for  10  years  for  mining  purposes,  such  act  did  not  prevent  the 
mutual  cancellation  of  such  lease  before  the  expiration  of  the 
term  and  the  making  of  a  new  one  to  the  same  parties  for 
another  term  not  exceeding  10  years.  United  States  v.  Abrams, 
194  Fed.  82. 

A  departmental  oil  and  gas  lease  was  executed  by  a  citizen 
of  the  Cherokee  Nation  to  S.,  who  thereafter  assigned  the  same 
with  the  approval  of  the  Secretary  of  the  Interior,  but  without 
the  consent  of  the  lessor,  to  the  Signal  Oil  Company,  who 
immediately  entered  into  possession  of  the  leased  premises  and 
in  due  time,  after  the  expenditure  of  a  considerable  sum  of 


DIGEST  OP  CASES  233 

money,  developed  a  producing  gas  well.  The  lessor  was  duly 
notified  of  the  assignment  of  said  lease  and  the  approval  thereof 
by  the  Secretary  of  the  Interior  and  thereafter  accepted  with- 
out question  the  rentals  and  royalties  due  her  by  tne  terms 
of  said  lease  for  a  period  of  several  years.  Held,  that  the 
lessor  by  her  conduct  waived  her  rights  under  the  clause  of 
the  lease  which  provides:  "And  it  is  mutually  understood  and 
agreed  that  no  sublease,  assignment  or  transfer  of  this  lease, 
or  of  any  interest  therein  or  thereunder,  can  be  directly  or 
indirectly  made  without  the  written  consent  thereto  of  the 
lessor  and  the  Secretary  of  the  Interior  first  had  and  obtained, 
and  any  such  assignment  or  transfer  made  or  attempted  with- 
out such  consent  shall  be  void."  Scott  v.  Signal  Oil  Co.,  35 
Okla.  172,  128  Pac.  694. 

The  provisions  of  Section  3  of  Article  1  of  the  State  Consti- 
tution, that  "the  people  inhabiting  the  State  do  agree  and 
declare  that  they  forever  disclaim  all  right  and  title  in  or  to 
any  unappropriated  public  lands  lying  within  the  boundaries 
thereof,  and  to  all  lands  lying  within  said  limits  owned  or 
'held  by  any  Indian,  tribe,  or  nation;  and  that  until  the  title 
to  any  such  public  lands  shall  have  been  extinguished  by  the 
United  States,  the  same  shall  be  and  remain  subject  to  the 
jurisdiction,  disposal,  and  control  of  the  United  States,"  do 
not  prevent  the  State  courts  from  exercising  jurisdiction  over 
controversies  as  to  the  possession  and  ownership  of  lands  within 
the  limits  of  Indian  tribes,  after  the  land  has  been  allotted, 
although  it  may  be  necessary  for  the  State  court  to  construe 
acts  of  Congress,  treaties  with  the  Indian  Tribe,  and  depart- 
mental leases  and  conveyances,  and  said  courts  have  jurisdic- 
tion over  a  controversy  as  to  possession  between  the  owner 
of  said  land  and  a  sublessee  of  the  land  for  oil  and  gas  mining 
purposes,  although  the  oil  and  gas  did  not  pass  by  the  allot- 
ment, and  though  the  original  lease  required  that  royalties  be 
paid  to  the  tribe.  Kohlmeyer  v.  Wolvering  Oil  Co.,  37  Okla. 
477,  132  Pac.  497. 

In  payment  of  the  bonus  for  an  oil  lease  upon  the  restricted 
lands  of  an  Indian  minor,  the  lessees  gave  a  certified  check 


234  OKLAHOMA  OIL  AND  GAS  LAWS 

therefor  to  the  guardian,  payable  upon  the  approval  of  said 
lease  by  the  Secretary  of  the  Interior  within  sixty  days.  This 
check  was  sent  to  the  Indian  Superintendent,  who,  upon  its 
receipt,  wrote  the  lessees  that  in  order  for  the  lease  to  receive 
favorable  consideration  they  were  required  to  pay  the  cash 
into  his  office.  In  reply  thereto,  the  lessee  wrote  to  said 
superintendent  that  they  desired  the  application  for  the  lease 
be  disapproved  and  the  check  returned  to  them.  Held,  this 
communication  of  the  superintendent  was  in  effect  notice  of 
the  refusal  to  approve  the  lease  contract  and  a  rejection  of 
the  same  under  its  then  terms,  and  that  the  lessees  were  thereby 
given  the  privilege  of  withdrawing  from  said  contract,  and, 
after  so  notifying  the  superintendent  to  that  effect,  were  no 
longer  bound  thereby.  Crosbie  v.  Brewer,  —  Okla.  — ,  158 
Pac.  388. 

In  a  suit  to  set  aside  an  oil  and  gas  mining  lease  for  fraud 
in  its  procurement,  and  while  plaintiff  was  a  minor,  in  viola- 
tion of  Act  May  27,  1908,  where  the  enrollment  records  fail 
to  disclose  the  date  of  enrollment  of  plaintiff,  but  the  undis- 
puted parol  evidence  shows  him  to  have  been  born  February  8, 
1890,  and  hence  was  a  minor  on  August  24,  1909,  the  date 
of  the  execution  of  the  lease,  evidence  examined,  and  held,  that 
the  court  was  right  in  finding  there  was  no  fraud  in  its  pro- 
curement, but  that  aside  from  the  question  of  fraud,  the  lease 
was  in  violation  of  the  act,  and  not  voidable,  but  void.  Gil- 
crease  v.  McCullough,  63  Okla.  24,  162  Pac.  178. 

Where  a  minor  citizen  of  the  Creek  Nation  of  one-eighth 
Indian  blood  during  his  minority  executes  a  lease  upon  his 
allotment,  without  the  intervention  of  the  county  court,  and 
void  as  in  contravention  of  Act  May  27,  1908,  and  after  attain- 
ing his  majority,  with  fraud  in  its  procurement,  and  for  a 
valuable  consideration,  executes  another  lease  on  the  same  land 
to  the  same  party  and  others  interested  in  the  prior  lease  for 
a  like  term,  held,  that  the  subsequent  lease  is  good,  and  that 
the  court  did  not  err  in  refusing  to  set  the  same  aside.  Gil- 
crease  v.  McCullough,  63  Okla.  24,  162  Pac.  178. 


DIGEST  OF  CASES  235 

Where  C.,  a  full-blood  Creek  citizen,  executed  an  oil  and 
gas  lease  upon  his  allotted  land  which  lease  was  filed  in  the 
office  of  the  United  States  Indian  agent,  Union  Agency,  at 
Muskogee,  and  C.  died  before  its  approval  by  the  Secretary  of 
the  Interior,  and  the  heirs  of  C.  thereafter  conveyed  said  lands 
by  deed  duly  approved  by  the  county  court,  after  which  said 
lease  was  approved  by  the  Secretary  of  the  Interior,  held,  that 
the  approval  related  back  to  the  date  of  the  lease,  and  the 
grantors  in  the  deeds  by  the  heirs  of  C.  take  title  subject 
to  said  lease.  Scioto  Oil  Co.  v.  O'Hern,  —  Okla.  — ,  169  Pac. 
483. 

Act  April  26,  1906,  c.  1876-20,  34  Stat.  145,  provides  that 
all  leases  of  full-blood  Creek  allottees  shall  be  subject  to 
approval  by  the  Secretary  of  the  Interior,  and  void  without 
such  approval,  and  that  leases  for  more  than  one  year  shall 
be  recorded  under  the  recording  law  in  force  in  the  Indian 
Territory.  Act  May  27,  1908,  c.  199-2,  35  Stat.  312,  provides 
that  leases  of  restricted  lands  for  oil  and  gas  purposes  may 
be  made  with  the  approval  of  the  Secretary  under  rules 
approved  by  him.  Act  March  1,  1907,  c.  2285,  34  Stat.  1026, 
provides  that  the  filing  of  any  lease  in  the  office  of  the  Indian 
agent  at  Muskogee,  Ind.  Ter.,  shall  be  deemed  constructive 
notice.  A  rule  of  the  department  declared  that  all  leases 
should  be  filed  by  the  lessor  within  thirty  days  from  execution 
with  the  Indian  agent  at  Muskogee.  A  full-blood  Creek  on 
March  20,  1912,  executed  an  oil  and  gas  lease,  which  was 
filed  April  5th,  within  thirty  days,  and  on  March  28th  executed 
another  lease,  filed  March  30th.  Held,  that  the  filing  was 
limited  to  giving  notice  to  parties  dealing  with  the  property, 
and  had  no  bearing  on  the  Secretary's  discretion,  and  that 
the  Secretary's  approval  of  the  first  executed  lease  established 
its  priority.  Anicker  v.  Gunsberg,  226  Fed.  176. 

Under  Act  March  3,  1905,  c.  1479,  33  Stat.  1060,  providing 
that  no  lease  of  allotted  lands  in  the  Indian  Territory  made 
by  any  guardian  shall  be  valid  without  the  approval  of  the 
court  having  jurisdiction  of  the  proceedings,  a  lease  of  the 


236  OKLAHOMA  OIL  AND  GAS  LAWS 

oil  and  gas  rights  in  such  lands,  made  by  a  guardian  and 
approved  by  the  Secretary  of  the  Interior  under  the  provisions 
of  Act  July  1,  1902,  c.  1375-72,  32  Stat.  726,  but  not  by  any 
court,  is  void.  Robinson  v.  Long  Gas  Co.,  221  Fed.  398. 

An  oil  and  gas  lease,  executed  by  the  guardian  of  an  Indian 
minor  in  Oklahoma  and  approved  by  the  proper  probate  court, 
is  valid  for  its  term  although  the  minor  reaches  majority 
before  its  expiration,  and  gives  the  lessee  the  right  of  posses- 
sion, although  the  land  is  at  the  time  in  possession  of  another, 
claiming  under  a  void  deed  from  the  minor.  Etchen  v.  Cheney, 
235  Fed.  104. 

Such  lease  was  an  alienation  of  the  oil  and  gas  taken  from 
the  land  by  the  lessor,  and  the  approval  thereof  by  the  Secre- 
tary of  the  Interior  was  a  removal  of  restrictions  on  such 
alienation.  Parker  v.  Riley,  243  Fed.  42. 

Act  May  27,  1908,  c.  199-1,  35  Stat.  312,  provides  that  home- 
steads of  allottees  enrolled  as  mixed-blood  Indians  having  half 
or  more  than  half  Indian  blood,  and  all  alotted  lands  of  enrolled 
full-bloods  and  mixed-bloods  of  three-fourths  or  more  Indian 
blood  shall  not  be  subject  to  alienation  prior  to  April  26,  1931, 
except  that  the  Secretary  of  the  Interior  may  remove  such 
restrictions  wholly  or  in  part.  Section  2  authorizes  leases  of 
restricted  lands  for  oil,  gas,  or  other  mining  purposes  with 
the  approval  of  the  Secretary  of  the  Interior.  Sec.  9  provides 
that,  if  any  member  of  the  Five  Civilized  Tribes  shall  die 
leaving  issue  born  since  March  4,  1906,  the  homestead  of  the 
allottee  shall  remain  inalienable  for  the  use  and  support  of 
such  issue  during  their  lives  until  April  26,  1931,  unless  restric- 
tions against  alienation  are  removed  by  the  Secretary  of 
Interior  in  the  manner  provided  in  Section  1.  Held  that,  where 
an  allottee  died  leaving  a  child  born  since  March  4,  1906,  and 
other  heirs,  the  subsequent  approval  by  the  Secretary  of  the 
Interior  of  an  oil  and  gas  lease  by  the  heirs  removed  the 
restrictions  on  alienation  from  the  leasehold  and  the  royalties 
thereunder,  without  a  removal  of  the  restrictions  or  alienation 


DIGEST  OF  CASES  237 

being  first  procured  under  Section  1.     Parker  v.  Riley,  243 
Fed.  42. 

Act  June  7,  1897,  c.  3,  30  Stat.  72,  authorized  allottees  of 
land  within  the  limits  of  the  Quapaw  Agency,  Indian  Territory, 
to  lease  their  land  "for  a  term  not  exceeding — ten  years  for 
mining  or  business  purposes."  An  allottee  subject  to  such 
act  executed  an  oil  and  mining  lease  for  ten  years,  with  a 
further  provision  that,  should  oil  or  other  mineral  of  value 
be  found  in  paying  quantities,  the  privilege  of  operating  should 
continue  so  long  as  such  substances  could  be  produced  in 
paying  quantities,  "on  such  terms  and  conditions  as  parties 
hereto  have  agreed  upon  after  the  expiration  of  this  lease." 
Held,  that  the  lease  was  divisible,  and  that  the  invalidity  of 
the  provision  for  an  extension  did  not  effect  its  validity  for 
the  ten-year  term  which  was  within  the  statute.  McCullough 
v.  Smith,  243  Fed.  823. 

In  1912  a  Creek  minor  of  the  full  blood,  through  his 
guardian,  and  with  the  approval  of  the  Secretary  of  the 
Interior,  executed  an  oil  and  gas  lease  on  his  allotment,  which 
was  subject  to  restrictions  upon  alienation.  The  lease  pro- 
vided for  the  payment  of  royalties  to  the  Indian  superintendent 
for  the  benefit  of  the  lessor,  and  under  the  regulations  of 
the  department  to  which  the  lease  was  subject  the  superin- 
tendent was  authorized  to  withhold  payment  of  such  royalties 
until  it  was  considered  for  the  interest  of  the  minor  or  his 
heirs  that  they  should  be  paid  over.  The  lease  further  pro- 
vided that,  in  event  restrictions  on  alienation  should  be 
removed,  it  should  be  released  from  the  supervision  of  the 
Secretary,  and  royalties  should  be  paid  to  the  lessor,  or  the 
then  owner  of  the  land.  The  lessor  died  while  still  a  minor, 
leaving  his  father  as  his  sole  heir.  A  large  sum  in  royalties 
had  previously  been  paid  to  the  superintendent,  and  other 
royalties  were  thereafter  paid  to  him.  Act  May  27,  1908, 
c.  199-9,  35  Stat.  315,  provides  that  "the  death  of  any  allottee 
of  the  Five  Civilized  Tribes  shall  operate  to  remove  all  restric- 
tions upon  the  alienation  of  said  allottee's  land.  Provided 


238  OKLAHOMA  OIL  AND  GAS  LAWS 

that  no  conveyance  of  any  interest  of  any  full-blood  Indian 
heir  in  such  land  shall  be  valid  unless  approved  by  the  court 
having  jurisdiction  of  the  settlement  of  the  estate  of  said 
deceased  allottee."  Held  that,  under  such  statute,  the  effect 
of  the  death  of  the  lessor  was  to  terminate  all  control  over 
the  land  and  of  the  lease  by  the  Secretary,  and  also  over 
the  royalties  previously  collected.  Richard  v.  Parker,  245  Fed. 
330. 

The  conferring  of  the  rights  of  majority,  conformably  to  a 
State  statute,  upon  a  minor  Indian  allottee  so  as  to  qualify 
him  to  make  a  lease  must  be  deemed  to  be  beyond  the  power 
of  an  Oklahoma  district  court,  notwithstanding  the  removal 
of  restrictions  on  alienation  by  Indian  allottees,  made  by  the 
Act  of  May  27,  1908  (35  Stat.  at  L.  312,  chap.  199),  Sections 
1  and  4,  in  view  of  the  provisions  of  Sections  2  and  6  of  that 
Act  defining  ''minors,"  and  specifically  providing  for  the  leas- 
ing of  their  allotments  by  their  guardians  under  the  order  of 
the  State  probate  courts,  which  are  given,  subject  to  the  provi- 
sions of  that  Act,  jurisdiction  of  the  person  and  property  of 
minor  allottees,  "except  as  otherwise  specifically  provided  by 
law,"  especially  since  a  contrary  view  would  conflict  with 
the  rulings  of  the  highest  State  court,  which  have  become  a 
rule  of  property.  Truskett  v.  Closser,  236  U.  S.  223,  59  L. 
Ed.  549. 

The  authority  granted  to  Quapaw  Indian  allottees  by  the 
provision  of  the  Act  of  June  7,  1897  (30  Stat.  at  L.  62,  chap.  3), 
modifying  the  general  restrictions  on  alienation  made  by  the 
Act  of  March  2,  1895  (28  Stat.  at  L.  876,  chap.  188),  to  lease 
their  lands  for  a  term  not  exceeding  ten  years  for  mining 
or  business  purposes,  does  not  empower  such  an  allottee  to 
make  a  ten-year  mining  lease  subject  to  a  valid  existing  ten- 
year  mining  lease  of  the  same  property,  which  still  has  several 
years  to  run.  U.  S.  v.  Noble,  237  U.  S.  74,  59  L.  Ed.  844. 

Allegations  in  a  bill  filed  by  the  lessee  of  an  oil  and  gas 
mining  lease  from  the  heirs  of  an  Indian  homestead  allottee 
for  the  recovery  of  possession  from  a  subsequent  lessee  of  the 


DIGEST  OP  CASES  239 

same  premises,  and  for  an  injunction  restraining  the  assertion 
of  any  rights  under  such  lease,  and  any  interference  with 
plaintiffs '  rights  under  their  lease,  that  plaintiffs '  lease,  though 
not  approved  by  the  Secretary  of  the  Interior,  was  valid,  and 
that  the  subsequent  lease  to  defendant,  which  had  such 
approval,  was  void,  because,  by  the  Act  of  May  27,  1908 
(35  Stat.  at  L.  312,  chap.  199),  the  land  descended  to  the 
heirs  of  the  Indian  allottee  free  from  any  restrictions  against 
leasing  the  same  for  oil  and  mining  purposes,  and  because  if 
that  Act  did  impose  restrictions  as  to  such  a  lease,  it  was 
repugnant  to  the  Federal  Constitution — were  material  to  the 
cause  of  action  stated  in  the  bill,  and  therefore  present  a 
cause  of  action  within  the  jurisdiction  of  a  Federal  district 
court  as  a  Federal  court.  Lancaster  v.  Kathleen  Oil  Co.,  241 
U.  S.  550,  60  L.  Ed.  1161. 

Restriction  on  alienation  by  allottee  of  the  Five  Civilized 
Tribes  of  his  land  never  being  removed,  provision  in  his  lease 
as  to  what  happens  in  that  event  never  becomes  effective. 
Anchor  Oil  Co.  v.  Gray,  257  Fed.  277. 

Under  a  cancellation  provision  of  a  full-blood  oil  and  gas 
lease,  payment  of  the  cancellation  fee  of  $1  and  expression 
of  intention  to  cancel  does  not  constitute  a  cancellation,  unless 
within  the  period  of  cancellation  the  provisions  relating  to 
delivery  of  recorded  releases  and  to  surrender  of  parts  of 
leases  be  complied  with;  and  such  provisions  are  held  not  to 
be  unreasonable  requirements.  Massachusetts  Bonding  &  Ins. 
Co.  v.  Lewis,  80  Okla.  187,  195  Pac.  494. 

The  contention  that  the  condition  precedent  of  approval 
by  the  Secretary  of  the  Interior  of  a  lease  of  an  Indian  allot- 
ment for  oil  and  gas  purposes,  which  was  imposed  by  the 
court  authorizing  such  lease,  was  retracted  when  that  court 
approved  the  executed  lease  before  it  had  been  presented  to 
the  Secretary,  when  it  was  reported  to  the  court  by  the 
guardian  of  the  Indian  allottee,  in  conformity  with  previous 
directions  to  that  effect,  is  plainly  without  merit,  where  the 
report  of  the  lease  and  its  approval  by  the  court  were  merely 


240  OKLAHOMA  OIL  AND  GAS  LAWS 

prerequisite  and  preliminary  steps  to  the  submission  of  the 
lease  to  the  Secretary  for  his  action,  in  order  that  the  condi- 
tion precedent  which  the  court  had  established  might  be 
brought  into  play,  and  where  every  condition  of  the  lease 
makes  it  manifest  that  it  was  drawn  with  reference  to  the 
power  of  the  Secretary  to  approve  or  disapprove  it,  and  that 
its  execution  was  subject  to  all  the  conditions,  limitations, 
and  restrictions  resulting  from  that  situation,  and  where  the 
petition  in  the  suit  to  uphold  the  validity  of  the  lease  alleges 
in  express  terms  that  the  Secretary  asserted  the  power  to 
approve,  and  that  the  court,  in  giving  the  authority,  acquiesced 
in  such  assertion  of  authority  as  a  prerequisite.  Wellsville  Oil 
Co.  v.  Miller,  243  U.  S.  6,  61  L.  Ed.  559. 

Failure  to  give  effect  to  a  lease  of  an  Indian  allotment  for 
oil  and  gas  purposes  is  not  a  denial  of  full  faith  and  credit 
to  the  order  of  the  United  States  court  of  the  Indian  Territory, 
authorizing  such  lease,  where  the  approval  of  the  Secretary  of 
the  Interior,  made  a  condition  precedent  by  that  court  to 
the  exercise  of  such  authority,  was  never  obtained.  Wellsville 
Oil  Co.  v.  Miller,  243  U.  S.  6,  61  L.  Ed.  559. 

20.  Rent  or  Royalties. 
See  Sec.  12,  Subdiv.  (5). 

A  departmental  oil  and  gas  lease  upon  160  acres  of  land 
which  has  been  approved  by  the  Department  of  Interior,  and 
thereafter  the  lessor  has  divided  said  land  into  subdivisions 
to  different  parties,  after  the  restrictions  are  removed,  the 
lessee  enters  into  a  written  contract  with  the  owners  of  the 
premises  that  the  depository  for  the  payment  of  the  oil  and 
gas  rentals  and  royalties  is  changed  from  the  place  provided 
in  said  lease  to  places  designated  by  the  different  land  owners. 
This  fact  does  not  make  the  lease  a  separate  lease  upon  each 
tract  of  land,  but  the  same  remains  a  lease  upon  the  entire 
tract  of  land,  and  the  drilling  of  a  gas  well  upon  any  portion 
thereof  and  the  payment  of  the  royalty  on  the  gas  well  as 


DIGEST  OP  CASES  241 

provided  in  the  lease  to  the  owner  of  the  portion  of  the  land 
where  said  gas  well  is  found  extends  the  life  of  the  lease 
upon  the  entire  tract  of  land.  Pierce  Oil  Corporation  v. 
Schacht,  75  Okla.  101,  181  Pac.  731— Note,  16  A.  L.  R.  588. 

Where  a  tract  of  land  subject  to  an  oil  and  gas  lease  is 
transferred  to  different  parties,  the  purchaser  of  each  portion 
takes  the  same  subject  to  such  lease;  and,  should  the  lessee 
thereafter  discover  and  produce  oil  or  gas  from  the  leased 
premises,  the  purchaser  is  entitled  to  the  royalties  accruing 
from  the  oil  and  gas  produced  on  the  portion  of  the  premises 
owned  by  him.  Id. 

Where  an  Indian  allottee  authorized  by  statute  to  execute 
a  mining  lease  for  ten  years,  with  the  right  to  collect  and 
dispose  of  the  royalties  accruing  thereunder  without  restric- 
tion, paid  over  to  defendant  one-half  of  such  royalties  after 
they  had  accrued,  either  voluntarily  or  pursuant  to  judgments 
of  a  State  court,  she  being  at  the  time  a  citizen  and  subject 
to  suit,  the  United  States  cannot  maintain  an  action  at  law 
to  recover  such  payments,  although  they  were  made  pursuant 
to  an  assignment  executed  before  the  royalties  accrued,  and 
which  was  void  and  could  have  been  canceled  at  suit  to  the 
Government  on  behalf  of  the  allottee.  United  States  v.  Moore, 
261  Fed.  523. 

A  surety  company,  surety  on  a  bond  guaranteeing  compliance 
with  the  terms  of  a  full-blood  oil  and  gas  lease,  made  to  the 
United  States  Government,  is  justified  in  paying  the  demands 
of  the  Government  of  rentals  and  charges  claimed  by  the 
Government  under  the  terms  of  an  oil  lease,  where  the  lessee 
has  failed  to  comply  strictly  with  the  terms  provided  in  the 
lease  and  the  regulations  of  the  Department  of  the  Interior 
for  cancellation;  since  a  bonding  company  for  hire  is  not  like 
an  accommodation  surety,  dealing  at  arms'  length  with  its 
obligee,  but  is  held  a  strict  compliance  with  the  terms  of  the 
contract.  Mass.  Bonding  &  Ins.  Co.  v.  Lewis,  80  Okla.  187, 
195  Pac.  494. 


TABLE  OF  GASES. 


(References  Are  to  Pages) 


Adams  v.  Iten  Biscuit  Co.,  107,  112,  117. 

Aggers  v.  Schaffer,  212. 

Alberti  v.  Moore,  97. 

Alameda  Oil  Co.  v.  Kelley,  224. 

Anchor  Oil  Co.,  v.  Gray,  176,  222,  225,  228,  239. 

Anicker  v.  Gimsberg,  227,  235. 
~~~Anthis  v.  Sullivan  O.  &  G.  Co.,  202,  207. 
—  Ardizzone  v.  Archer,  170,  188,  199. 

Ashcraft  v.  Moffett,  224. 

Associated  Employers'  Reciprocal  v.  State  Industrial  Com.,  116. 

B 

Baker  v.  Campbell-Ratcliff  Land  Co.,  162,  163,  165. 
^^  Barnes  v.  Keys,  208. 
/Barnes  v.  Stonebraker,  230. 
,/Barnes  v.  Winona  Oil  Co.,  172. 

Barnsdall  v.  Owen,  225,  230. 

Barton  v.  Laclede  Oil  &  Mining  Co.,  177. 

Bay  v.  Okla.  Southern  Gas,  Oil  &  Mining  Co.,  162. 

Bearman  v.  Dux  O.  &  G.  Co.,  177,  194. 

Bennie  v.  Red  Star  Oil  Co.,  191. 

Bentley  v.  Zelma  Oil  Co.,  175. 

Blackwell  O.  &  G.  Co.  v.  Whited,  192. 

Blackwell  O.  &  G.  Co.  v.  Whitesides,  197. 

Blanlot  v.  Carbon,  122. 

Board  of  Conors,  of  Creek  County  v.  Alexander,  90. 

Board  of  Comrs.  of  Cleveland  County  v.  Barr,  123. 

Board  of  Education  v.  Corey,  90. 

Booth-Flinn  v.  Cook,  114,  120,  123. 

Brennan  v.  Hunter,  195,  196. 

Bristow  Cotton  Oil  Co.  v.  State  Industrial  Com.,  113,  119. 
^Brown  v.  Wilson,  189,  209. 
^Brunson  v.  Carter  Oil  Co.,  169,  212. 

243 


244  TABLE  OF  CASES 

(References  Are  to  Payes) 
C 

Cabin  Valley  Mining  Co.  v.  Hall,  16. 

Cahill  v.  Pine  Creek  Coal  Co.,  179. 

Campbell  v.  State,  144. 

Carder  v.  Blackwell  O.  &  G.  Co.,  177,  207. 

Carter  Oil  Co.  v.  Popp,  172. 

Carter  Oil  Co.  v.  Tiffin,  181,  190. 

Choctaw,  O.  &  G.  Ry.  Co.  v.  Harrison,  85. 

Choctaw  Portland  Cement  Co.  v.  Lamb,  110,  114,  118,  123. 

Chisholm  v.  Creek  &  Dec.  Co.,  172,  220. 

Christy  v.  Union  O.  &  G.  Co.,  93,  97. 

City  of  Pawhuska  v.  Pawhuska  O.  &  G.  Co.,  19,  78. 

Cline  v.  Pattin  Bros.  Co.,  95,  159. 

Cogdall  v.  Cottrell,  218. 

Cohn  v.  Clark,  193,  208. 

Collier  v.  Bartlett,  164. 

Comanche  Light  &  Power  Co.  v.  Nix,  86. 

Cowles  v.  Lee,  223. 

Cox  v.  Butts,  215. 

Crosbie  v.  Brewer,  225,  226,  234. 

Curtis  v.  Harris,  177,  203. 

D 

Davis  v.  Moffet,  221. 

Davis  v.  Selby,  230. 

Davis  v.  State  Industrial  Com.,  122. 

Deming  Inv.  Co.  v.  Lanham,  179. 

Dixon  v.  Owen,  231. 

Downey  v.  Gooch,  180. 

Duff  v.  Keaton,  163. 


Eastern  Oil  Co.  v.  Beatty,  183,  191,  198,  199. 

Eastern  Oil  Co.  v.  Holcomb,  171. 

Eastern  Oil  Co.  v.  Smith,  213. 

Eberle  v.  Drennan,  97. 

Eldred  v.  Okmulgee  Loan  &  Trust  Co.,  231. 

Emery  Bros.  v.  Mutual  Benefit  Oil  Co.,  216. 

Etchen  v.  Cheney,  236. 

Exchange  Oil  Co.  v.  State,  86. 


TABLE  OF  CASES  245 

(References  Are  to  Pages) 

F 

First  Natl.  Bank  of  Waurika  v.  Clay,  168. 

Flynn  v.  Ponca  City  Milling  Co.,  122. 

Francen  v.  Okla.  Star  Oil  Co.,  172. 

Francis  Vitrio  Brick  Co.  v.  State  Industrial  Com.,  123. 

Oil  Co.  v.  Belleview  Gas  &  Oil  Co.,  163,  174,  177,  185,  188. 


G 

Garber  v.  Hauser,  204. 

Garfield  Oil  Co.  v.  Champlin,  163,  166,  168,  169,  177,  207,  214. 
Gem  Oil  Co.  v.  Callendar,  216. 
-Gilcrease  v.  McCullough,  234. 
Gonzales  v.  Cowerd,  206. 

Gulf  Pipe  Line  Co.  v.  Pawnee-Tulsa  Petroleum  Co.,  216. 
Gypsy  Oil  Co.  v.  Cover.  172,  185,  201. 


Harvey  v.  Benmo  Oil  Co.,  213. 
Henley  v.  Okla.  Union  Ry.  Co.,  Ill,  120. 
Hennessy  v.  Junction  Oil  &  Gas  Co.,  169,  203,  212. 
Hill  Oil  &  Gas  Co.  v.  White,  163. 
Hoggson  Bros.  v.  Dickason-Goodman  Lumber  Co.,  97. 
xHoyd  v.  Fixico,  228. 

I 

In  re  Assignment  of  Western  Union  Tel.  Co.,  59. 

In  re  Gross  Production  Tax  of  Wolverine  Oil  Co.,  85. 
^In  re  Indian  Ty.  Illuminating  Co.,  59,  163. 

In  re  Oklahoma  Gas  &  Elect.  Co.,  60. 

In  re  Protest  of  Bendelari,  86. 
.-In  re  Skelton  Lead  &  Zinc  Co.,  86. 

Indiahoma  Oil  Co.  v.  Thompson  Oil  &  Gas  Co.,  224. 

Indiana  Oil,  Gas  &  Dev.  Co.  v.  McCrory,  169,  172,  178,  186,  214. 

J 

Jackson  v.  Moore,  169. 
^Jens-Marie  Oil  Co.  v.  Rixae,  211. 
Johnston  v.  Shaffer,  184. 
Joplin  Sash  &  Door  Works  v.  Okla.  Presbyterian  College,  97. 


246  TABLE  OF  CASES 

(References  Are  to  Pages) 
K 

Kansas  Natural  Gas  Co.  v.  Haskell,  164. 
^vKeechi  O.  &  G.  Co.  \.  Smith,  207. 

Kelly  v.  Harris,  163,  179. 

Keps  v.  Brady,  218. 
^Kimbley  v.  Lucky,  164,  171. 

King  v.  Coombs,  170. 

Kingfisher  County  v.  Grimes,  108. 

Kohlmeyer  v.  Wolverine  Oil  Co.,  233. 

Kolachny  v.  Galbreath,  163. 

Kroeger  v.  Martin,  167,  184,  202. 


Lahoma  Oil  Co.  v.  State  Industrial  Com.,  107,  117. 

Lamont  Gas  &  Oil  Co.  v.  Doop  &  Frater,  215. 

Lancaster  v.  Kathleen  Oil  Co.,  239. 

Large  Oil  Co.  v.  Howard,  86. 

Lavery  v.  Mid-Continent  Oil  Dev.  Co.,  190. 

Leahy  v.  Indian  Territory  Illuminating  Oil  Co.,  162,  219,  220,  221,  223. 

Letcher  v.  Maloney,  216. 

Love  v.  Boyle,  17,  19,  24. 

Love  v.  Kirkbride  Drilling  &  Oil  Co.,  175. 

Lusk  v.  State,  58. 

M 

Magnolia  Petroleum  Co.  v.  Saylor,  183,  202. 

Massachusetts  Bonding  &  Ins.  Co.  v.  Lewis,  239,  241. 

Maud  Oil  &  Gas  Co.  v.  Bodkin,  183,  190,  211. 

McCarter  v.  State,  59. 

McCray  v.  Miller,  191. 

McCullough  v.  Smith,  237. 

McKee  v.  Grimm.  208. 

McKee  v.  Interstate  O.  &  G.  Co.,  228. 

McKee  v.  Thornton,  167. 

McKinley  v.  Teagins,  177,  207. 

Melton  v.  Cherokee  Oil  &  Gas  Co.,  188,  195. 

Meyer  v.  Wells  Fargo  &  Co.,  86. 

Midland  Oil  Co.  v.  Turner,  217. 

Minshall  v.  Berryhill,  173. 

Mitchell  v.  Probst,  167,  187,  208, 


TABLE  OF  CASES  247 


Moore  v.  Sawyer,  165,  176,  219,  221. 
Moore  v.  White,  170. 
Mullen  v.  Carter,  226. 
Mullen  v.  Mitchell,  122,  123. 

N 

New  State  Oil  &  Gas  Co.  v.  Dunn,  177,  203. 
Neilson  v.  Alberty,  221. 

North  Healdton  Oil  &  Gas  Co.  v.  Skelley,  217. 
Northup  v.  Eakes,  218. 
^Northwestern  Oil  &  Gas  Co.  v.  Branine,  185,  190. 

O 

Oklahoma  Natural  Gas  Co.  v.  State,  43. 


• — Paraffine  Oil  Co.  v.  Cruce,  177,  180,  189,  194,  214. 

Parks  v.  Sinai  Oil  &  Gas  Co.,  186. 
—Parker  v.  Richard,  227,  228. 
—Parker  v.  Riley,  236,  237. 
__Pelham  Petroleum  Co.  v.  North,  206. 

Pickett  v.  Smith,  90. 

Pierce  Oil  Corporation  v.  Phoenix  Refining  Co.,  54. 

Pierce  Oil  Corporation  v.  Schacht,  200,  226,  241. 

Pipe  Line  Cases,  54. 
^Prairie  Oil  &  Gas  Co.  v.  Cruce,  58. 
—Priddy  v.  Thompson,  163. 

Producers  Supply  Co.  v.  Maple  Leaf  Oil  Co.,  217. 

Prowant  v.  Sealy,  177,  204. 

Pucini  v.  Bumgarner,  181,  190. 

Pulaski  Oil  Co.  v.  Conner,  179,  217. 

R 

Ramey  v.  Stephney,  164,  166. 

Raulerson  v.  State  Industrial  Com.,  123. 

Republic  Supply  Co.  v.  Powell,  97. 
—  Rich  v.  Doneghey,  163,  164,  166,  182,  190. 
,_  Richard  v.  Parker,  238. 

Richardson-Gay  Oil  Co.  v.  Ashton,  66. 
^Riddle  v.  Keechi  O.  &  O.  Co.,  184. 


248 


Riley  v.  Kelsey,  219. 

Roach  v.  Junction  Oil  &  Gas  Co.,  169,  186,  199. 

Robinson  v.  Long  Gas  Co.,  236. 

Rogers  v.  Harris,  166,  229. 

Rush  Creek  Oil    Gas  Co.  v.  King,  218. 

S 

Sanders  v.  Davis,  192,  201. 
•  Scioto  Oil  Co.  v.  O'Hern,  176,  235. 
Scott  v.  Signal  Oil  Co.,  174,  175,  233. 
Scroggy  v.  Kelley,  97. 
Shafer  v.  Marks,  163,  188,  196,  211. 
Sharp  v.  Lancaster,  231. 
Schulthis  v.  McDougal,  222. 
Smith  v.  State  Industrial  Com.,  Ill,  120. 
Southwestern  Oil  Co.  v.  Hendricks,  197. 
Southwestern  Oil  Co.  v.  McDaniel,  197. 
Stasmas  v.  State  Industrial  Com.,  Ill,  114,  116. 
Steger  Lumber  Co.  v.  Haynes,  97. 

Steger  Lumber  Co.  v.  Oklahoma  Presbyterian  College,  97. 
Stephenson  v.  State  Industrial  Com.,  109,  118,  121,  123. 
Stem  v.  Kemp,  174. 
Strange  v.  Hicks,  191,  205. 
Superior  Oil  &  Gas  Co.  v.  Mehlin,  1G2,  177. 
Swan  v.  O'Bear,  176. 


Test  Oil  Co.  v.  La  Tourette,  177. 
Texas  Co.  v.  Henry,  52,  223. 
Tidal  Oil  Co.  v.  Koelfs,  205. 
Tidwell  v.  Dobson,  220,  222. 
Tilloston  v.  Martin,  165. 
Treese  v.  Shoemaker,  172. 
Truskett  v.  Closser,  232,  238. 
Tucker  v.  Canfield,  192. 
Tupeker  v.  Deaner,  170. 


U 


Uucle  Sam  Oil  Co.  v.  Richards,  93,  171. 
Union  Bond  &  Inv.  Co.  v.  Bernstein,  97. 
United  States  v.  Abrams,  232. 
United  States  v.  Moore,  241. 


TABLE  OF  CASES  249 

(References  Are  to  Payes) 


United  States  v.  Noble,  238. 
United  States  v.  Wright,  223,  224. 
Unity  Drilling  Co.  v.  Bentley,  109. 


Van  Winkle  v.  Henkle,  169. 

W 

Walker  v.  McKemie,  222,  232. 

Walton  Lumber  Co.  v.  Cox,  97. 

Wapa  Oil  &  Dev.  Co.  v.  McBride,  169,  176,  177,  192. 

Warner  v.  Page,  163. 

Washburn  v.  Gillespie,  169,  201,  213. 

Wells  v.  Shriver,  218. 

Wellsville  Oil  Co.  v.  Miller,  178,  232,  240. 

Whitehall  v.  Howard,  85,  86. 

Wick  v.  Gunn,  107,  113,  121. 

Wilkinson  v.  Stone,  177. 

Willis  v.  State  Industrial  Com.,  113,  115. 

Wilson  Lumber  Co.  v.  Wilson,  123. 

Withington  v.  Gypsy  Oil  Co.,  210. 

Woodworth  v.  Franklin,  163,  172,  174. 

Wooten  v.  Lackey,  201. 

Wolf  v.  Blackwell  O.  &  G.  Co.,  162,  212. 

Wright  v.  Gillespie,  201,  213. 


Zelina  Oil  Co.  v.  Nemo  Oil  Co.,  173. 


CROSS-REFERENCES  TO  STATUTES  AND 
SESSION  LAWS 


3186 

3863 

3864 

3865 

3866 

3867 

4290- 

4304 

4305 

4306 

4307 

4308 

4309 

4310 

4311 

4312 

4313 

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4315 

4316 

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4319- 

4332 

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4347 

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4356 

4357 

4358 

4359 


Laws  1910.        Herein 
ms.            Sections. 
68 

Rev.  Laws  1910. 
Sections. 
6547  

Herein 
Sections. 
16 

128 

6548  

17 

129 

6971  

133 

124 

6972    

137 

125 

6975  

138 

127 

6976  

139 

303  51 

7195-7200  

9 

67 

7201  

7 

68 

7202  

9 

69 

7203  

9 

70 

7336  

82 

71 

7338  

83 

72 

7341  

84 

73 

7343  

85 

74 

7347  

86 

75 

7464  

113 

76 

7465  

114 

77 

7466  

115 

78 

7467  

116 

79 

7468  

123 

80 

Ph  98 

81 

'•'  i                  ••>•> 

Sec.  1  

65 

87 

Sec.  2  

66 

88 

Ch.  99 

87 

Sec.  1  

51 

89 

2  

52 

87 

3  

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87 

4  

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96 

5  

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6  

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7  

57 

ftfl 

8  

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94 

9  

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87 

10  

61 

87 

11  

61 

99 

100 

Sess.  Laws  1913. 

Herein 

101 
95 

Ch.  99 
Sec.  12  

1  ^ 

Sections. 
62 

CO 

102 
103 

14  

64 

104 

Ch.  152 

1  (\K 

Sec.  1  

109 

OT 

2  

110 

87 

Ch.  198 

87 

Sec.  1 

46 

87 

2 

47 

106 

3 

48 

107 

4 

49 

108 

5  . 

.  50 

251 


CROSS-REFERENCES  TO  STATUTES  AND  SESSION   LAWS. 


Sess.  Laws  1915. 
Ch.  25 
Sec.    1    

Herein 
Sections. 
36 

Sess.  Laws  1916. 
Ch.  39 
Sec.    5               .... 

Herein 
Sections. 
119 

2   

37 

6     

120 

3   

38 

7       

121 

4   

39 

8       

.  .    .     122 

5   

40i 

6   

41 

Sess.  Laws  1917 

Herein 

7    

.   42 

Ch.  129 

Sections. 

8    

43 

Sec.   1    

Ill 

9    

44 

2     

112 

10    

45 

PVi      9A7 

Ch.  96 

Sec.   1    

18 

Sec.    1    

87 

2   

19 

2   

89 

3  

20 

3    

94 

4      

21,  87 

4    

.  .   95 

5       

22 

Ph     1H7 

6   

23 

Sec.    1,  Sub-Div. 
2,  Sub-Div. 

A,  Art.  2  113 
A,  Art.  2  116 

Ch.  223 
Sec.    1    

12 

3,  Sub-Div. 
4,  Sub-Div. 

A,  Art  2  117 
A,  Art.  2  119 

Ch.  230 
Sec.    1    

130 

Ch.  197 

2  

131 

Sec.    1    

24 

3 

132 

2    

25 

3       

26 

Ch.  253 

4 

97 

Sec.    1    

1 

c 

00 

2   

2 

on 

3  

3 

7 

Of* 

4   

4 

o-i 

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q 

00 

6    

6 

1ft 

OO 

7   

7 

8   

9 

Ch.  197 
Sec.  11  

34 

12   

35 

r<Vi     1  A 

Ch.  200 

Sec    1       

141 

Sec.    1    

109 

2       

142 

Ph     94fi 

3     

142 

Arf         I 

4   

143 

tA9 

5  

144 

1  RK 

6   

145 

4 

1  CQ 

7   

146 

1  OC 

8  

148 

9   

148 

Ph     948 

195 

10   

151 

11   

165 

SP«I    T.I\VJ  1'41i; 

IT 

12   

194 

Ph     '.Q 

13    

189 

Sec.   5   

113 

14   

1  R 

196 

2   
3 

116 

10     

Ch.  120    .".... 

1  oi> 
54 

4   . 

..118 

Ch.  179    . 

.   15 

252 


CROSS  REFERENCES   TO   STATUTES    AND    SESSION    LAWS. 


Sess.  Laws  1919 
Ch.  197 
Sec.    1    

Herein 
Sections. 
89 

Sess.  Laws  1919 
Ch.  246 
3  

Herein 
Sections. 
.135 

2  

90 

4 

19C 

3   

91 

4   

92 

Ch.  258 

5 

<n 

Sec.    2    

124 

Ph     9C\R 

3   

126 

Sec.    1    

10 

Sess  Laws  1921 

2  

11 

fiu      1  CO 

Ch.  246 

Sec.    1     

13 

Sec.    1    

133 

2     

14 

2   . 

..134 

3   . 

.   15 

INDEX 


(References  Are  to  Pages) 

ABANDONMENT. 

Plugging  abandoned  wells,  how  rules  prescribed,  17. 
Release  of  abandoned  lease,  144. 

ACKNOWLEDGMENTS. 
Individual  form,  159. 
By  officer  of  corporation,  160. 
When  executed  by  mark,  160. 

ACTIONS. 

Gas  Conservation  Law,  action  by  Atty.  General,  21. 
Gas  Conservation  Law,  action  by  any  citizen,  21. 
Gas  Pipe  Lines,  action  to  enforce  laws,  48. 
Inspection  Laws,  action  to  collect  fines,  63,  69. 
Oil  Conservation  Act,  action  by  Atty.  General,  26. 
Oil  Conservation  Act,  action  by  any  citizen,  26. 

APPEALS. 

For  enforcement  of  Gas  Conservation  Act,  22. 

Manner  and  time  of  taking,  22. 

For  enforcement  of  Oil  Conservation  Act,  26. 

Manner  and  time  of  taking,  26. 

For  enforcement  of  Gas  Pipe  Line  Laws,  49. 

For  enforcement  of  Inspection  Laws,  64. 

ASSIGNMENTS. 

Lease,  how  assigned  on  public  lands,  9. 
Lease,  form  for  assignment  of,  148. 
Royalty,  form  for  assignment  of,  151. 

255 


256  INDEX 

(References  Are  tc  Pages) 

ATTORNEY  GENERAL. 

Action  to  collect  fines,  Inspection  Laws,  63,  69. 
Gas  Conservation  Act,  to  enforce,  21. 
Gas  Pipe  Line  Laws,  action  to  enforce,  48. 
Oil  Conservation  Act,  action  to  enforce,  26. 
Prosecutions  for  violation  of  Inspection  Laws,  70. 
Receiver,  may  be  applied  for  when,  27. 

BOARD  OF  PUBLIC  AFFAIRS. 

May  lease  penal  or  eleemosynary  lands,  14. 

BOND. 

Executed  to  State  on  leasing  public  lands,  11. 

CHIE'F  MINE  INSPECTOR. 

Duties  of  not  changed  by  Gas  Conservation  Act,  23. 

CITIES. 

See  Towns. 

COMMERCIAL  QUANTITY. 

Gas,  amount  considered,  20. 

COMMON  CARRIERS. 
Of  gas,  44. 
Of  oil,  53. 

COMMON  PURCHASERS. 
Fair  treatment  by,  21. 
Gas  Pipe  Lines  are,  43. 
Oil  Pipe  Lines  are,  52. 

CONSERVATION  AGENT. 
Appointed  how,  17. 
Gas  Conservation  Act,  to  enforce,  22. 
Oil  Conservation  Act,  to  enforce,  25. 
Plugging  of  wells,  supervision  over,  17. 
State  Oil  Inspector,  see  subject. 


INDEX  257 

(References  Are  to  Pages) 

CONSERVATION  LAWS. 

Actions  to  enforce,  21,  26. 

Agents  for  enforcement  of,  22,  26. 

Appeals  for  enforcement  of,  22,  26. 

Conservation  Agent,  office  created,  17. 

Corporation  Commission,  bearings  before,  21. 

Gas  Conservation  Laws,  19. 

Gas,  excess  supply,  20. 

Gas,  penalty  for  taking  more  than  share  of,  29. 

Gas  production  limited  to  25  per  cent,  28,  47. 

Oil  Conservation  Laws,  24. 

Pipe  Lines,  to  accept  provisions  of,  22. 

Penalty  for  violations  of,  23,  27. 

.Rules  for  metering  gas,  79. 

Receiver  may  be  appointed,  when,  27. 

Waste  of  gas  defined,  19. 

Waste  of  oil  defined,  25. 

CONTRACTS. 

Form  for  contract  to  lease,  147. 
Drilling  contract,  form  for,  154. 
Void  if  in  violation  of  Inspection  Laws,  70. 

CORPORATION    COMMISSION. 

Agents  to  enforce  Gas  Conservation  Act,  may  appoint,  22. 
Agents  to  enforce  Oil  Conservation  Act,  may  appoint,  25. 
Appeals  from  orders  of,  22,  26. 

Common  purchasers  of  gas,  may  prescribe  rules  to  regulate,  21. 
Conservation  of  gas,  hearings  before,  21. 
Conservation  of  oil,  hearings  before,  26. 
Contempt,  may  punish  for,  21,  26. 
Deputy  Oil  Inspectors,  may  appoint,  62. 
Gas,  may  determine  commercial  quantity  of,  19. 
Gas,  may  permit  taking  more  than  25  per  cent  of,  28,  47. 
Gas  Pipe  Line  Laws,  receivership  for  violations  of,  48. 
Gas  Pipe  Line  Laws,  to  enforce,  49. 
Gas  wells,  may  prescribe  i-ules  for  flow  of,  20. 
Inspection  rules,  power  to  pass,  63,  64. 
Inspection  of  oils,  jurisdiction  over,  18. 
Interstate  gas  pipe  lines,  license  granted  when,  60. 
Meter  reports,  to  be  filed  with,  47. 
'     Meter  requirements,  rules  of,  79. 


258  INDEX 

(References  Are  to  Pages) 
CORPORATION  COMMISSION— Continued. 

Oil  and  Gas  Department,  jurisdiction  over,  17. 

Oil  may  regulate  taking  of,  25. 

Oil,  may  regulate  production  and  sale  of,  24. 

Oil  Pipe  Lines,  to  file  plats  with,  54. 

Pipe  Lines,  power  to  regulate,  17. 

Pipe  Lines,  to  file  plats  with,  45. 

Plats,  may  extend  time  for  filing,  46,  56. 

Waste  of  oil,  may  prescribe  rules  to  prevent,  25. 

Waste  of  gas,  may  prescribe  rules  to  prevent,  22. 

Wells,  may  prescribe  rules  for  gauging,  25. 

Wells,  may  prescribe  rules  for  plugging,  17. 

Witnesses,  power  to  summon,  21,  26. 

COUNTY. 

Gross  Production  Tax,  share  of,  89. 
Leases  authorized  for  oil  and  gas  by,  15. 
Leases,  how  executed  by,  15. 

COUNTY  ATTORNEY. 

Inspection  Laws,  action  by  to  collect  fines,  63,  69. 
Prosecutions  for  violation  of  Inspection  Laws,  70. 
Receiver,  may  apply  for  when,  27. 

DAMAGES. 

For  sale  of  inferior  oils,  69. 
Gasoline,  failure  to  use  red  tanks,  102. 
Lessee  liable  to  surface  owner,  11. 
Sale  of  uninspected  oils,  68. 

DEFINITIONS. 

Commercial  quantity  of  gas,  meaning  of,  19. 

Manufacture,  defined,  62. 

Person,  meaning  of,  58,  62. 

Petroleum,  meaning  of,  51. 

Public  Service  Corporation,  defined,  58. 

Waste,  defined,  19,  25. 

DISCRIMINATION. 

Gas,  prohibited  by  purchasers  of,  21. 
Gas,  prohibited  by  common  carriers  of,  44. 
Gas  Pipe  Lines  must  not  discriminate,  43. 
Oil,  prohibited  by  purchasers  of,  25. 
Oil  Pipe  Lines  must  not  discriminate,  52. 


INDEX  259 

(References  Are  to 


EMINENT  DOMAIN. 

As  between  lessee  and  owner  of  surface  interest  in  State  lands,  12. 

Foreign  corporations  may  exercise  right  of,  when,  46. 

Gas  Pipe  Lines,  granted  to,  43,  45. 

Oil  Pipe  Lines,  granted  to,  51,  52. 

Pipe  Lines  must  comply  with  Act  1913,  42. 

Power  companies,  granted  to,  98. 

Right  of  refused  without  acceptance  of  Gas  Conservation  Act,  22. 

Rights  granted  not  to  interfere  with  public,  99. 

Rights  same  as  railroads,  99. 

FOREIGN  CORPORATIONS. 

May  use  highways,  when,  52. 

Owning  stock  of  domestic  gas  company  prohibited,  50. 

Right  of  eminent  domain,  when,  55. 

FORMS. 

Acknowledgments,  159. 

Assignment  of  oil  and  gas  lease,  148. 

Assignment  of  oil  and  gas  royalty,  151. 

Contract  for  oil  and  gas  lease,  147. 

Drilling  contract,  154. 

Lien  on  oil  or  gas  well,  statement  of,  158. 

Mineral  deed,  153. 

Oil  and  gas  lease,  145. 

Release  of  oil  and  gas  lease,  149. 

Royalty,  sale  of,  150. 

Stipulation  for  change  of  depository,  157. 

GAS. 

Conservation  of,  19. 

Commercial  quantity,  amount  considered,  19. 

Department  established,  17. 

Discrimination  by  purchasers  prohibited,  21. 

Evidence,  reports  of  gas  companies  as,  49. 

Excess  supply  of,  how  determined,  20. 

Gas  companies,  minimum  charge  prohibited,  78. 

Meter  requirements,  47. 

Meters,  gas  companies  to  use,  78. 

Must  not  take  more  than  25  per  cent  of,  47. 

Ownership  defined,  28. 

Penalty  for  taking  more  than  share  of,  29. 


260  INDEX 

(Reference*  Are  to  Pages) 

GAS — Continued. 

Pipe  Lanes  must  not  discriminate,  43. 

Purchasers  of  output,  29. 

Restrictions  on  output,  28. 

Rules  for  metering  gas,  79. 

Tax  on  production  of,  82. 

Transportation  of,  22. 

Waste  of,  defined,  19. 

Waste  of,  prohibited,  19. 

Waste,  regulations  for  prevention  of,  22. 

Wells,  guaging  capacity  of,  19. 

GAS  COMPANIES. 

Annual  statement  to  be  filed  by,  60. 
Meters  shall  be  used  by,  78. 
Minimum  charge  prohibited  by,  78. 
Penalty,  79. 
Rules  for  metering  gas,  53. 

GASOLINE. 

Penalty  for  failure  to  use  red  tanks,  102. 
Vendors  must  use  red  tanks,  102. 

GAS  PIPE  LINES. 

Annual  statement,  how  filed,  59. 

Common  carriers  of  gas,  44. 

Common  purchasers  of  gas,  43. 

Conservation  Law,  must  accept  provisions  of,  22. 

Corporation  Commission,  to  enforce  laws  of,  49. 

Corporation  Commission,  to  regulate,  17. 

Denied  right  to  do  business,  when,  45. 

Discrimination  prohibited,  21. 

Eminent  domain,  granted  to,  43. 

Gas  to  be  metered  by,  47. 

General  laws  pertaining  to,  42. 

Highways,  use  of,  granted  to,  43,  46. 

Interstate  lines  not  to  own  stock  of  domestic  lines,  50. 

Meter  requirements,  47. 

Must  not  take  over  25  per  cent  of  gas,  47. 

Penalty  for  violations  of  act,  48. 

Pre-requisites  to  carrying  gas,  45. 

Plats  to  be  filed,  45. 


INDEX  261 

(References  Are  to  Paffes) 

GAS   PIPE  LINES— Continued. 

Plats,  time  may  be  extended  for  filing,  46. 

Purchasing  gas  from  interstate  pipe  lines,  50. 

Receivership  for  violations  of  act,  48. 

Report  of  meter  readings,  47. 

Rules  for  metering  gas,  79. 

Taxation,  statement  of  property  to  be  filed,  58. 

Workmen's  Compensation  Law,  applies  to,  107. 

GOVERNOR. 

Chief  Oil  and  Gas  Conservation  Act,  appointment,  17. 
Agents  to  enforce  Gas  Conservation  Act,  appointment,  22. 
Agents  to  enforce  Oil  Conservation  Act,  appointment,  25. 

GROSS  PRODUCTION  TAX. 

General  laws  pertaining  to,  82. 

GUARDIANS. 

Former  leases  legalized,  16. 
May  lease  lands  of  ward,  16. 

HIGHWAYS. 

Foreign  corporations,  may  use  when,  46,  52. 
Gas  Pipe  Lines,  right  to  use,  42,  43,  45. 
Oil  Pipe  Lines,  right  to  use,  52,  55. 

INFANTS. 

Guardian  may  lease  lands  of,  16. 

INSPECTION   LAWS. 

General  laws  pertaining  to,  61. 
Jurisdiction  of  Corporation  Commission,  18. 

INSPECTORS. 

Appointed,  how,  18. 

Compensation  and  duties  of,  62. 

Corporation  Commission,  duty  to  follow  rules  of,  63. 

Fees  of,  18,  65. 

Inspections,  how  made,  64. 

Inspections,  when  not  required,  67. 

Hindering  in  duties  of,  penalty,  66. 

Misconduct  of,  penalty,  67. 

Penalty  for  altering  marks  of,  67. 

Penalty  for  false  tests,  66. 


262  INDEX 

(References  Are  to  Pages) 

LAND  COMMISSIONERS. 

Public  lands,  power  to  segregate,  10. 
Riparian  oil  lands,  right  to  lease,  13. 
Roles,  may  prescribe  for  leasing,  11. 
School  lands,  right  to  lease,  9. 


LEASES. 

County  may  lease,  15. 

Forfeited  leases  to  be  released  from  record,  144. 

Guardians  may  execute,  16. 

Oil  and  gas  lease,  form  for,  145. 

Provisions  of,  on  public  lands,  11. 

Public  lands,  terms  of,  10. 

Release  of,  form  for,  149. 

School  lands,  subject  to,  9. 

State  lands,  subject  to,  9. 

School  districts  may  lease,  15. 

Towns  may  lease,  15. 


LIENS. 

Oil  and  gas  well  liens,  92. 
Form  for  filing  statement,  168. 


NITROGLYCBRIN. 

Shooting  wells  in  cities,  101. 
Transportation  of  in  cities  prohibited,  101. 
Vehicles  transporting  to  be  labeled,  102. 


OIL. 

Conservation  of,  25. 

Department  established,  17. 

Discrimination  by  purchasers  prohibited,  25,  52. 

Inspection  of,  61. 

Production  and  sale  regulated,  24. 

Tax  on  production  of,  82. 

Waste  of,  defined,  25. 

Waste  of,  prohibited,  24. 

Wells,  gauging  capacity  of,  25. 


INDEX  268 

(References  Are  to  Page*) 


OIL  PIPE  LINES. 


Annual  statement,  how  filed,  59. 

Common  carriers  of  oil,  53. 

Common  purchasers  of  oil,  52. 

Corporation  Commission,  to  regulate,  17. 

Discrimination  prohibited,  52. 

Eminent  domain,  granted  to,  55. 

Evidence,  reports  of,  may  be  used  as,  57. 

General  laws  pertaining  to,  51. 

Penalty  for  violations  of  act,  56. 

Penalty  may  be  suspended,  when,  57. 

Plats  to  be  filed,  54. 

Plats,  time  may  be  extended  for  filing,  56. 

Production,  not  to  be  interested  in  when,  54. 

Right-of-way  granted  to,  51,  52,  55. 

Taxation,  statement  of  property  to  be  filed,  58. 

Workmen's  Compensation  Law,  applies  to,  107. 


PENALTIES. 

Adulteration  of  oils,  69. 

Alteration  of  inspector's  marks,  67. 

Filing  false  meter  reports,  47. 

Gas,  for  taking  more  than  share  of,  29. 

Gas,  violation  of  act  on  output  of,  29. 

Gas  Conservation  Act,  for  violations  of,  23. 

Gas  Pipe  Line  Laws,  for  violations  of,  48. 

Gasoline,  failure  to  use  red  tanks,  102. 

Gross  Production  Tax,  filing  false  reports,  91. 

Inspection  Laws,  recovery  of  fines,  69. 

Inspectors,  failure  to  erase  marks  of,  67. 

Inspectors,  for  misconduct  of,  67. 

Leases,  for  failure  to  release,  144. 

Meter  regulations,  for  violations  of,  78,  79. 

Nitroglycerin,  unlawful  use  of,  102. 

Oil  Conservation  Act,  for  violations  of,  27. 

Oil  Pipe  Line  Laws,  for  violations  of,  56. 

Oils,  for  false  tests  by  inspectors,  65. 

Oils,  for  selling  without  inspection,  63,  66. 

Oils,  unlawful  sale  of,  68. 

Pipe  Linos,  for  failure  to  file  statement,  60. 


264  INDEX 

(References  Are  to  Pages) 

PIPE  LINES. 

See  Gas  Pipe  Lines. 
Also,  Oil  Pipe  Lines. 

PLUGGNG. 

See  Wells. 

PRODUCTION. 
See  Wells. 

PUBLIC  LANDS. 
See  State  Lands. 

•RECEIVER. 

Gas  Pipe  Line  Laws,  appointed  for  violations  of,  48. 
Oil  Conservation  Act,  appointed  for  violations  of,  27. 

RIPARIAN  OIL  LANDS. 
State  may  lease,  13. 
Mode  of  leasing,  13. 

ROYALTY. 

Assignment  of,  form  for,  151. 
Lien  on  by  State,  83. 
Sale  of,  form  for,  150. 
Tax  due  State,  83. 

RULES. 

Conservation  Laws,  rules  for  enforcement  of,  30. 

Inspection  rules,  70. 

Land  Commissioners,  may  adopt  rules,  11. 

Meter  regulations,  rules  pertaining  to,  79. 

Storage  and  loading  of  oils,  rules  for,  103. 

Waste  of  gas,  Corporation  Commission  may  pass  rules,  22. 

Waste  of  Oil,  Corporation  Commission  may  pass  rules,  25. 

Wells,  Corporation  Commission  may  prescribe  rules  for  gaug- 
ing, 25. 

Wells,  Corporation  Commission  may  prescribe  rules  for  plug- 
ging, 17. 


INDEX  265 

(References  Are  to  Page*) 

SCHOOL  DISTRICTS. 

Gross  Production  Tax,  share  of,  89. 
Leases,  authorized  by,  15. 
Manner  of  executing  leases,  15. 

SCHOOL  LANDS. 
Leases  on,  9. 
Terms  of  lease,  10. 

STATE  AUDITOR. 

Gas  Companies  to  file  statement  with,  60. 
Gross  Production  Tax,  duties  pertaining  to,  82. 
Pipe  Lines,  statement  to  be  filed  with,  59. 
Rebate  of  production  tax,  when,  86. 
Sale  of  property  for  delinquent  taxes,  87. 

STATE  LANDS. 

Bond  executed  to  State,  11. 

Damages  to  surface  owners,  11. 

Disposition  of  funds,  12. 

Leasing  of,  9. 

Penal  or  eleemosynary  lands,  leasing  of,  14. 

Riparian  Oil  Lands,  leasing  of,  13. 

Terms  of  lease,  10. 

STATE  OIL  INSPECTOR. 
Duties  of,  62. 
See  Conservation  Agent 
Also,  Inspectors. 

SUPREME  COURT. 

Gas  Conservation  Act,  appeals  to,  22. 
Gas  Pipe  Line  Laws,  appeals  to,  49. 
Inspection  Laws,  appeals  to,  64. 
Oil  Conservation  Act,  appeals  to,  26. 

\ 

TAXATION. 

Gross  Production  Tax,  82. 

Pipe  Lines,  statement  of  taxable  property  by,  59. 


266  INDEX 

(References  Are  to  Pages) 

TOWNS. 

Leases  authorized,  15. 

Leases,  how  executed  by,  16. 

Nitroglycerin,  transportation  prohibited  in,  101. 

Wells,  shooting  within,  101. 

WASTE. 

Corporation  Commission  may  pass  rules  to  prevent,  82, 
Definition,  waste  of  gas,  19. 
Definition,  waste  of  oil,  25. 
Gas,  waste  of  prohibited,  19. 
Oil,  waste  of  prohibited,  24. 

WELLS. 

Conservation  Agent,  to  supervise  plugging  of,  17. 

Drilling  Contract,  form  for,  154. 

Gas,  production  limited  to  25%,  28,  47. 

Gas  wells,  gauging  capacity  of,  19. 

Liens  on,  92. 

Oil  Pipe  Lines,  not  to  produce  when,  54. 

Oil  wells,  gauging  capacity  of,  25. 

Plugging,  Corporation  Commission  to  prescribe  rules,  17. 

Production,  tax  on,  82. 

Shooting  of,  within  cities,  101. 

Workmen's  Compensation  Law,  applies  to,  107. 

WORKMEN'S  COMPENSATION. 
General  Laws,  107. 


^fromwhichitwas bor?owed  ^ 


A     000  698  347     2 


